Managing the mortgage
THE dreaded mortgage – it’s usually depicted as one of those unnecessary evils. But when it comes to the frequent traps that mortgage holders fall into, it’s good to know that there are ways to get you back on track, according to Rockhampton Aussie franchise manager Michelle Ryan.
Ms Ryan said some of the common traps that people fall into start with not saving for a deposit.
“Set a savings goal, if you haven’t started saving yet,” she said before applying for a mortgage.
“And try to stay in the same place / same job. This demonstrates your stability to a lender.”
Ms Ryan said it is also important to make minimum payments on all of your accounts, whether credit cards or personal loans.
“Some banks have a very long memory,” she warned.
Before applying for a loan, people can also fall into the trap of joint accounts.
“Make sure the other person will honour their commitment to the bill,” Ms Ryan said before launching a joint account.
But those with an existing mortgage will know that the traps do not always end there.
Ms Ryan said some people miss a payment without keeping the lender informed.
Others lock into a fixed interest rate and want to break the contract early.
“Most lenders do not allow their customers to miss a minimum payment and impose heavy fees on customers that do,” she said.
But fear not, for those experiencing hardship, whether job related or otherwise, there can be exceptions.
“These may be available to people who have recently lost their jobs or have another reason for an interruption to regular income.
“Contact your lender to discuss a possible hardship repayment schedule.”
To ensure you do not fall into these common traps, Ms Ryan gives some simple advice.
“Always make minimum payments and save for a deposit.
“Know the major check points for you to be approved. Income is important however not the only thing.”
A mortgage can be seen as a scary concept but if you are wise, there are ways to handle it smoothly.
“Pay weekly or fortnightly, you’ll