After taking out a home loan and settling into your new property, you may begin to find yourself struggling with the regular payments of your mortgage. This is known as mortgage stress and can be an uncomfortable experience to go through. It often occurs when someone is using a significant amount of their paycheck to make repayments.
There are a number of ways to help mitigate this problem, which will help you to get back on top of your financial situation and get your head back above water.
Adopt a frugal lifestyle
During the initial months, it could be a good idea to maintain your deposit saving habits in order to manage the early payments. Once you get into the groove of making regular contributions to your mortgage balance, it will be easier to decide on where your money should be going and what can be altered to make it easier.
Things like regularly eating out with friends, drinking takeaway coffee on the daily, or having a digital television subscription are all potential aspects of life that could be removed in the event that money gets tight.
Create an emergency fund
Similarly, before you even take out your home loan, it could be worth putting aside more savings into another account while creating a deposit. This can act as your emergency fund that can be dipped into in order to alleviate the stress of making regular mortgage repayments.
Furthermore, this doesn't just have to be for your mortgage. Having a stowed away amount of money can be a life saver for unforeseeable complications arising during your life, allowing you to take care of these without undue stress.
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.