Freezing your mortgage payments
If you are concerned about your mortgage repayments – whether you are unable to work, or you want to give your investment property tenants a break in paying their rent – you may wish to consider putting a freeze on your home loan to provide some time and space in uncertain times. Here are five steps to follow if you’re considering freezing your mortgage repayments.
1. Plan ahead
Many people, understandably, during times of difficulty will try to avoid thinking about something that might eventually cause them stress. Others will worry and overthink about what might happen in the future. Both are totally normal responses. But in uncertain times, the most important thing is to try to think rationally, and take proactive steps to prepare for the future.
Most lenders, landlords, property managers, and tenants will be able to come together and agree on an arrangement that suits all parties. But, it can’t be done without communication. So as an early step, you should ensure you check in with all parties to discuss individual circumstances and concerns.
If your tenants are unable to make rent, you may want to offer them a concession for a limited period of time. If you’re not able to work that into your finances, then a conversation with your lender may be required to come to an arrangement.
3. Do some research and budgeting
A number of lenders are offering their home loan customers the option to defer repayments for up to six months, if they find themselves unable to pay their mortgage. Specific terms will vary, but it’s worth doing your research to learn what your lender may be offering.
It’s also worth taking steps to plan and research other ways you might be able to save money – many people aren’t aware of the concessions and discounts that could be being offered, so it’s worth keeping on top of government announcements and media coverage to ensure you understand what you could benefit from.
Most people will already be keeping a close eye on their finances, but now could be the right time to sit down and do some serious financial planning and budgeting for the future. It might not be an enjoyable activity, but if you are able to motivate yourself to doing it, you’ll likely notice the benefits later.
4. Seek expert advice
During uncertain times, it’s important to have as many people as possible on your team. Financial experts will be able to examine your current (and predicated) circumstances to help navigate your next steps. You can benefit from up-to-date knowledge and expertise when it comes to services and products that are available. We recommend taking this step sooner rather than later as this is likely to be a busy period for the reputable brokers.
5. Take the step of freezing your mortgage
If you have planned ahead, contacted your tenants and lender, conducted some research, spoken to an expert, and you have come to conclusion the you need to freeze your mortgage repayments – don’t be afraid or worried about taking that step. The financial industry and mortgage providers are working hard to offer products and services that will support people through difficult financial times.
So, if you need to take up these services, you should contact your individual mortgage lender (or use the help of an expert to support you) and discuss the steps you need to take to get it done.
Contact Reventon for support
Reventon remains in operation and our staff are available to support you during this time through telephone and video conferencing via Skype, Zoom, or FaceTime. Please get in touch by phone or email as a first step if you require support, or to discuss your options.
If you are feeling anxious or concerned about your financial situation, or about anything else related to the current difficult circumstances, please consider seeking support. A good place to start is the Beyond Blue Looking after your mental health during the coronavirus outbreak, which includes a hotline and links to financial support.