{"id":7297,"date":"2017-11-30T01:00:16","date_gmt":"2017-11-30T01:00:16","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/how-to-avoid-mortgage-stress\/"},"modified":"2017-11-30T01:00:16","modified_gmt":"2017-11-30T01:00:16","slug":"how-to-avoid-mortgage-stress","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/how-to-avoid-mortgage-stress\/","title":{"rendered":"How to avoid mortgage stress"},"content":{"rendered":"

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Facing mortgage<\/a> stress \u2013 when a household\u2019s income doesn\u2019t cover its outgoings, including mortgage repayments \u2013 is a scary prospect, but with good planning, it can be avoided.<\/strong><\/p>\n

John Tindall, of Accumulus Home Loans<\/a> in Sydney, says many Australians with mortgages fail to plan well, if at all, for potential interest rate rises or changes in financial circumstances , which can both impact the ability to pay a mortgage.<\/p>\n

\"mortgage<\/p>\n

Facing mortgage stress is a scary prospect. Picture: Getty<\/p>\n<\/div>\n

He says understanding your true financial position, making additional payments, having an offset account or fixing interest are just some of the ways to avoid mortgage stress.<\/p>\n

Tindall says lenders<\/a> and mortgage brokers use income information and estimated expenses to ensure applicants can afford the loan they\u2019re applying for.<\/p>\n

\u201cIn fact, they\u2019re doing it at interest rates of 7-7.5%, effectively \u2018stress-testing\u2019 your ability to repay,\u201d he says.<\/p>\n

\u201cBut understanding your own \u2018ins\u2019 and \u2018outs\u2019 is important in case you need to adjust, so we give our clients a family budget spreadsheet to help manage their finances,\u201d Tindall adds.<\/p>\n

A budget will help understand the \u2018now\u2019 so the future can be better managed.<\/p>\n

\u201c(With a budget), if difficulties arise, then adjustments to a loan and or lifestyle can relieve the stress,\u201d he says.<\/p>\n

Making additional repayments is an excellent way to get ahead of normal repayments, with the added benefit of reducing interest, Tindall says.<\/p>\n

\u201cOffset accounts are another example, however they can be a little too accessible at times.<\/p>\n

\u201cSome lenders may also allow you to take a repayment holiday if the circumstances are right, such as a critical illness or a new baby, but it\u2019s a case-by-case basis,\u201d Tindall says.<\/p>\n

\"woman<\/p>\n

Offset accounts are a great solution to avoid mortgage stress, although they can be too readily accessible. Picture: Getty<\/p>\n<\/div>\n

A fixed interest rate is a great way to provide certainty of repayments, particularly with interest rates currently at record lows, he says.<\/p>\n

\u201cBe careful though, as there is often a limit on additional repayments and offset accounts, meaning there is less flexibility as well.\u201d<\/p>\n

\n <\/p><\/div>\n

Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Facing mortgage stress \u2013 when a household\u2019s income doesn\u2019t cover its outgoings, including mortgage repayments \u2013 … How to avoid mortgage stress<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":7298,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[981,347,617,4418,4419,4420,1329,408,312,818],"class_list":["post-7297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-a-house","tag-home-loan","tag-house","tag-how-to-avoid-mortgage-stress","tag-how-to-avoid-mortgage-stress-test","tag-how-to-avoid-mortgage-stress-test-2019","tag-loan","tag-mortgage","tag-mortgages","tag-real"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/mortgage-stress_2000x1500.jpg?fit=2000%2C1500&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7261,"url":"https:\/\/amazingproperty.com.ng\/blog\/canadas-controversial-new-mortgage-rules\/","url_meta":{"origin":7297,"position":0},"title":"Canada's Controversial New Mortgage Rules","author":"Amazing Property","date":"November 27, 2017","format":false,"excerpt":"Canada's banking regulators think that home buyers are spending too much money and taking on too much debt. 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