There are many people out there that will lose their house this year, I know it’s sad, but it is going to happen. Now is the time to plan your strategy to try everything you can to prevent this from happening to you.
Some things you can do:
Please ALWAYS consult a financial advisor before doing anything where your financial planning is concerned.
Ask the bank for a rates concession. Even if they only agree to a small concession it will save you money and have a major financial impact on your life. If you take the extra cash you save and repay it into your bond you could pay your mortgage off quicker.
Your credit profile is one of the tools a lender uses to determine your credit risk, the better your profile the better your chance of getting a rates concession and this could vary between 0.5% and 1.5%. If you have been paying your house diligently for the last few years you can approach your lender/bank to negotiate an interest rate concession.
Refinance your house to cover you over this period. If you go to a decent mortgage originator they could provide you with the advice you need. They will be able to go to the banks and get different options, which could work out cheaper. Maybe you move your home loan to a new bank and get a better interest rate. If you do consider doing this remember that it is risky, all increased debt on your house is risky, but it could just provide you with the buffer you need to get back on your feet.
If you have any “dead money” (savings etc.) move it into your home loan account, even if it is just temporarily. Your interest rate is worked out on a daily basis and by moving all your unused money to your loan could save you money, and potentially save your house. As long as the money is in your loan account your loan will be smaller. The smaller your loan, the more you save on the interest.
I hope some of these can help you out if you need a plan. If anyone else out there have any other suggestions please let us ALL know, after all that is why we started Yes2Property, to help each other.
