Man­ag­ing the mort­gage

Central and North Burnett Times - - DOMAIN -

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

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