27 Jun 2022

What happens when you defer a mortgage payment?

Mortgages

Your real interest liability or rate is not affected by deferring a mortgage payment because, in Australia, you cannot defer a loan payment unless there are special circumstances awarded by the government. Because of Covid-19, there were exceptions and lenders were forced to allow borrowers to defer their mortgage payments for approximately three months.

Inflation mixed with Covid-19 shutdowns led to uncertain times where many Australians could not afford to keep up with their mortgage payments. However, without this special exception, you cannot defer your mortgage payment. If you cannot repay your mortgage payment, then there is not much you can do. Missing a payment or paying it late reflects poorly on your credit report while also leading to a late fee.

Late fees can eat you up! Instead of relying on potential mortgage deferrals, you should look into innovative ways to save money to pay for your mortgage. Changing the direct debit scheduled date, for example, can make a mortgage payment more manageable.

Deferring a Mortgage Payment Conclusion

Sadly, deferring a mortgage payment is not an option for most of us. Only during special circumstances, like during the peak of Covid-19, has the government of Australia allowed borrowers to defer their loan payments. Mortgage House can assist you in finding a manageable loan with competitive interest rates.

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