Do You Need a Home Loan Holiday?
Paying off a mortgage can feel like a grind sometimes. Just like paying bills, rent or for petrol, it can be a bit frustrating to watch your hard-earned money disappear from your account so soon after arriving.
You’d be forgiven for wanting to take a break from paying off your home loan so you could treat yourself, and as it turns out, there’s a name for that. It’s called a “home loan holiday”, and some lenders will happily work with you to arrange one.
Different lenders have different requirements when it comes to home loan holidays, while some lenders won’t even allow one at all. It might be worth checking with your lender whether or not they provide the option to take a home loan holiday, and what their terms would be if so.
Why take a home loan holiday?
If you’re hoping to take a trip somewhere or make a large purchase, taking a home loan holiday could be the perfect way to free up your funds.
Alternatively, if you’re facing financial difficulty, you should consult your lender and be candid about your situation. Good lenders understand that people’s finances can get complicated, and a home loan holiday might be the perfect way to get back on top of things.
The duration and terms of your home loan holiday will be subject to the agreement you make with your lender. It’s important to disclose your expectations and financial situation when you speak with your lender – the more they know, the more they can help and offer the right solution.
How to take a home loan holiday
There are a few different ways a home loan holiday can work.
One way is through leveraging your redraw facility into a home loan holiday. In other cases, you can simply get a temporary mortgage payment reduction that lasts a predetermined amount of time without any other strings attached.
If your lender allows for home loan holidays, they’ll work with you to determine the best method for your situation.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
That’s why we keep things flexible, allowing for home loan holidays and other helpful arrangements with our homeowners.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.