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Are You Currently Struggling to Meet Your Mortgage Repayments?

Keep reading for guidance on how to take steps to support mortgage journey. Here at The Newstead Group, we want to provide support to everyone. If you are struggling, or if you feel like you can’t meet your repayments, please just reach out, we are here to help.

Here are some options if your household finances are getting tighter.


Rate Negotiation

The first step is to reach out to us, or your bank, in order to undertake a rate negotiation. Requesting a rate negotiation will have a direct impact on your repayments and may immediately ease your stress. Please keep in mind we proactively negotiate on your loan, but lenders provide us with some level of limitation on how often we can negotiate your rate. This generally ranges from daily, to annually. In the case that your lender doesn't meet your negotiation requirements, and you still feel that pressure, consider refinancing and asking us about what options might be available.


In order to find out how different rates are negotiated contact your lender directly as they will be able to offer you their fixed rate, as well as negotiate a variable rate. Please keep in mind that sometimes lenders have limitations on how often they can reprice your loan. In this case, ensure you explain to your lender how important this rate negotiation is to you, as they can make exceptions to that policy. For any inquiries in regard to pricing please contact piper@thenewsteadgroup.com.au.


Budget

The second step, once you've worked out your new home loan rate (or remain on the existing rate), is to establish a budget. Take some time to work out how much is coming in, and how much is going out. If you require a template, please just let us know.


Our advice is that you should take a moment to put aside an hour and sit down by yourself or with your significant other to create a list of your expenditure over the past 90-days. Here are the categories we use for living expenses here at The Newstead Group.

  • Utilities & Rates – Owner Occupied

  • Utilities & Rates – Investment

  • Telephone & Internet

  • Groceries

  • Recreation & Entertainment

  • Clothing & Personal Care

  • Medical & Health (Excluding Insurance)

  • Transport

  • Education

  • Childcare

  • Insurance

After creating this list, you should try and reduce your expenditure to an amount that would be able to comfortably accommodate for your mortgage repayment. You can then obtain your net income from your payslips, minus your mortgage repayment from this, and see if you are currently in a positive or negative position. We under this can be daunting and we would be also be happy to assist with this, reach out to us today.


Financial Hardship

If the budget hasn't helped, and you are truly in need of additional support, please reach out to your lender to discuss hardship options. Hardship options are where the lender can pause repayments for a period of time. Just note, this comes with some negatives, so please ensure you ask your lender surrounding the downsides of going on to a hardship repayment term. Hardship terms are generally converting your loan to interest only repayments for 3-months on average.


Wondering what our mortgage brokers can offer you? Get in touch with us here at The Newstead Group and we would be happy to answer any questions you may have.

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