07 Jan 2022
How Long Can You Defer Your Mortgage?
Lenders go through an extensive mortgage application process with every homebuyer. It lasts between four weeks to three months to ensure that the applicant’s finances can handle the 30-year commitment.
Homebuyers who receive a home loan pass the lender’s stress tests and ratios such as buffering. Nonetheless, things happen. Some homeowners lose their income, experience a death in the family, or expand their household. Sometimes financial hardship is temporary. You only require a short-term bridge to get to the other side.
A home can request to defer your mortgage. Fill out the proper forms and turn them into the lender promptly. The sooner you complete the process the more time the lender has to complete a thorough evaluation.
Deferring a mortgage means entering forbearance. The forbearance period lasts one year in most cases. Sometimes lenders approve it for 18 months. While that sounds like a break, homeowners must remain financially responsible. During the forbearance period, interest charges continue to accrue. Before the forbearance period ends, homeowners can pay it. If they do not, the lender capitalises on it. The result is a more expensive home loan.
Mortgage House works with clients who require a deferral. We also offer several online tools such as the mortgage repayment calculator.
Defer Your Mortgage Conclusion
Homeowners who experience financial hardship can contact their lender and request to defer their mortgage. Keep in mind that the lender will go through a series of protocols before approving it. Mortgage House takes it a step further. Our loan specialists search for solutions that improve the homeowner’s financial position. Contact our team to obtain more information.