Is Mortgage Deferral A Good Idea?
In Australia, an estimated 12.5% of individuals experience some form of financial hardship. Homeowners who experience financial hardship must take a proactive approach to their finances.
For homeowners, the goal is to avoid foreclosure. Lenders want to avoid the foreclosure process too. Once you sense that your finances are tight, contact your lending institution.
You can request a mortgage deferral. The question becomes is it a good idea?
In a short-term crunch, a deferral is a good idea. Some homeowners need one to six months to put their finances back on track. A deferral is one option that gives homeowners some breathing room.
Even though your repayments enter a deferral period, the interest rate does not stop accruing. In addition, lenders can capitalise on any outstanding interest rate charges when the deferral period expires. This makes your mortgage more expensive.
However, the expense may keep you in your home.
Homeowners who find themselves in financial hardship have several options at their disposal. You can get back on track. Mortgage House is a non-bank lender. Thus, we employ a forward-thinking mindset. We have developed a set of tools and innovative products that allow homeowners to weave out of tough times.
We also help first-time homebuyers become homeowners even if they do not have a 20% deposit, full financial documentation, or long credit history.
Mortgage Deferral Conclusion
Mortgage House clients who require a mortgage deferral can contact our loan specialists. Sometimes the refinance home loan is the best solution. Other times, skipping a payment helps. Nonetheless, our loan specialists can help.