A home loan is a big financial commitment and for many people the years after purchasing their house can be a real challenge as they adjust to monthly repayments.
Those whose financial situation is very healthy or are prepared for a large portion of their income to go towards paying off their loan may not feel too much of a strain.
For others, it may feel like mortgage repayments are eradicating not just their ability to save, but their ability to enjoy a lifestyle they feel entitled to. In particular, young families and those in the early stages of their careers may feel burdened by their new debt.
Mortgage stress can also come about due to one-off events such as illness, injury, loss of employment or the end of a relationship.
If you find you are not dealing well with home loan repayments, a good place to start addressing the issue is by redrawing your budget.
Examine your income and expenses and see if there is a way to free up some money without affecting your ability to meet mortgage payments.
Your financial situation will likely have changed since the last time you made a budget plan, so you may be able to identify where money is being wasted and reallocate it where it can be better used.
Another idea is to make lump sum repayments on your loan, if this is possible, to gain some breathing space in the future should your circumstances prevent full repayments.
This can also reduce the total amount of interest you pay and the term of your loan – plus, knowing you are ahead of the curve can be a great psychological boost.
If you find your situation is simply not flexible enough for these options however, home loan refinancing can help you find a better deal to reduce your monthly repayments, as well as giving you options for consolidating your debt.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.