Managing Mortgage Stress

Regardless of where you are living or how much your property is worth, Mortgage stress can affect anyone.

Although interest rates play a role in generating mortgage stress, an unexpected life event is more often than not the real cause; unemployment, illness, injury, and breakdown of relationships are some of the most common causes of mortgage stress.

Preventing stress on mortgages

The best solution to managing mortgage stress is to put strategies in place to prevent it altogether. BuildME can help you in two key areas that can assist you with mortgage management and avoid mortgage stress are:

Based on your current financial situation and objectives, sit down and create a reasonable budget. Consider what is needed, what is desired, and what is wasted. Remember, you need to provide your budget with some money. Prefer our best budget planner to help you get your investments.

By making additional repayments whenever possible, try to build a ‘buffer’ into your home loan. If you do find yourself in temporary trouble, contact our mortgage advisor. Either by making additional payments or saving additional money into an offset account, you can do this. Make sure that your loan first allows additional repayments without penalty.

Our top suggestions for paying off your mortgage faster are here. When you take a home loan, you should also consider life insurance, income protection insurance, or mortgage protection insurance to cover you in the event of sickness, injury, or even death.

Quick tips to ease the stress of mortgages

Suppose you experience mortgage stress or believe that you will soon have trouble making your home loan repayments. In that case, you should communicate to your mortgage advisor. You can then present your case to your lender for consideration by your BuildME mortgage specialist. We are the best bad credit Mortgage Brokers in Auckland. It’s vital to remember that our lender will only sell your home as a last resort, so they should keep your house financially!

Some options you may have at your disposal to help manage your situation when you experience mortgage stress include:

  • To increase your loan term, take a repayment holiday, or both, apply for a hardship variation. Most lenders offer these.
  • Consolidate debt 
  • Refinance the home loan 
  • Switch to a repayment option for interest only

It’s important to note that not all alternatives will be accessible. It will depend not only on your situation in many cases but also on the lender your home loan is with. Specific fees are also likely to be involved, especially if you are looking at refinancing.

Before deciding on your course of action, you might want to discuss your situation with our mortgage adviser or other related financial professionals, such as our financial planner and accountant.

In more extreme cases, while you get back on your feet, you might think about considering selling your home and downsizing further out of town or returning to renting for some time. The sooner you make this choice, the better off you are going to be.