Mortgage stress is not a new thing when it comes to property owners in Australia. A report released by ME Bank Household Financial comfort found that 56% of households contribute more than 30% of their income towards paying their mortgage or rent. There are better ways to reduce the financial burden and manage your mortgage repayments with these five tips.
Ask for assistance
Sometimes you find yourself cash-strapped due to unexpected costs popping up. According to ME Bank, 7% of households reported that they couldn’t always pay their mortgage on time. If you see that you won’t be able to make it for the monthly mortgage repayments for the upcoming month it will help to speak to your lender. They might be able to change your payments or allow a payment holiday for a short period until your finances are back in order. It’s advisable that you only do this if you are in need.
Cut down on things you don’t need
Expenses can pile up easily, but some can be avoided if you stuck to a budget. It will have to be a realistic budget that doesn’t see you surviving on a toothpick and a thong regime. By doing a monthly check on your expenses you will be able to spot where your money is leaking out. When doing grocery shopping you can buy in bulk. The catch is to check your cupboards and fridge before hitting the store to stock up. The last thing you want is buying the same product three times.
Be careful not to associate ‘cheap’ with quality
The adage of ‘quality over quantity’ hits the spot when it comes to purchasing anything. Buying cheap things could seem like a great deal at the time, but when you count the replacement costs you will soon find that it is costly. This is why it is important to always compare quality products or home loans to make sure that you get an affordable deal among the affordability pile. Constantly shop around until you find a quality deal that hits your sweet spot.
Get a house that you can afford
It’s important that when you select a house you always factor in the long-term financial effects. You will have to check and see if the house you wish to finance will be affordable even if the interest on your repayments rises by a percentage or two. Settling for a house that was not your dream house for affordability could be ideal. You could use the time you spend at this house to build up a solid saving account to help you secure your dream home one day. It is just a matter of time.
Take advantage of opportunities
If there are low rates that come by taking full advantage by increasing your repayments. Even if the interest rate is for a stipulated period. You can get into the habit of paying more than the minimum to help you pay off your mortgage quicker. It will also help give you room to breath when you find yourself strapped for cash.