About Mortgage Stress
Many homeowners get into financial difficulty and mortgage stress is a real issue for them. And if you also experience mortgage stress, help is usually available.
What is mortgage stress?
Mortgage stress usually affects people who pay more than 30% of their pre-tax income on their EMIs. In order to stay out of financial trouble, you should avoid going over this level of financial commitment.
Tips to avoid mortgage stress :
When a borrower applies for a home loan, the lender will definitely ask him if he knows of anything that might affect his ability to repay the loan.It’s obvious that you can’t predict everything that might affect your ability to repay your loan. Here are some tips to help you avoid mortgage stress:
- Be realistic about what you can afford to repay and borrow.
- You need to understand that the borrowing calculator only gives you approximations.
- Check plans, like having kids or renovating your home, aren’t going to stretch your budget too far.
- Get insurance to cover your mortgage and income in case of illness, disability, and death as well as unemployment.
- Reconsider the type of property you want to purchase if your budget seems too tight.
- Borrow the amount of money that lets you save money for emergencies.
- Don’t rely on what your lender says you can borrow – ensure you will be able to repay id interest rates rises.
What to do if you get into trouble
If you are having trouble making your home loan repayments, tell your lender, they must be having a financial hardship program they can offer you. Though this is a short time solution, so if you think this problem is going to be longer-term, seek help from a financial advisor. Dialabank can offer you budgeting advice, help make arrangements with lending institutes. Our services are free.
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