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LOWEST INTEREST RATES EVER YET MORTGAGE STRESS IS RISING

Even though Australia has the lowest interest rates ever in history before, mortgage stress appears to be still on the rise. 

Based on The Mortgage Choice 2013 Future First Homebuyer/Recent First Homeowner Survey of 1,000 Australians who were looking to purchase their first home in the next two years or who bought their first home in the last two years. 

The survey revealed that first homeowners in South Australia were experiencing the highest in mortgage stress with over 60% respondents. Western Australia was close behind with 54%, 52% in both Victoria and Queensland and 50% in New South Wales.

Mortgage stress can be caused by major industry job losses. Causing income earners to lose or both incomes from the household. Dropping a wage is hard on those who already have a tight budget. Even if there are some savings put aside that can help pay those mortgage repayments, it will soon run out if work cannot be found. And in this climate, expect 300-500 applicants for some sought out jobs. Even entry level jobs are now having highly skilled workers apply, just to get back into the industry.

If you are dealing with mortgage stress, speak with your lender. There may be other temporary options available that can lower your stress and possibly lower the repayments until you find work again. Giving you the mental capacity to focus on making a living. If your current financial institution is not helpful than seek out other loan providers to see what other options you have, outside of that financial institution. The possibility of refinancing your mortgage with a different financial provider may be a better option for you and give your mortgage a lower rate. Selling your property can be another solution to the problem. Be sure to discuss your situation and stress with a close member of your circle and a professional in the business before making any major decisions. 

Contact Australian Mortgage Managers on 1300 799 266 or email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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Mortgage interest rates stabilise

Written by Melanie Toye, September 6, 2014

Another great decision by the Reserve Bank of Australia Board that all Australian home owners will be cheering about. On 2 September, the Board decided to leave the cash rate unchanged at 2.5 per cent. 

This gives mortgage owners a chance to continue to add additional money into their mortgage without the funds being chewed up by high interest charges. 

And because of this, mortgages will be paid out much quicker. In some cases, if a mortgage owner adds an additional $200 a week into their mortgage. They might be able to chop five years, off their total loan amount. Can you imagine not paying a mortgage repayment anymore? Well, if you pay extra in your mortgage while taking advantage of the low interest rates, you could be living without a mortgage much sooner than you except.

The things you could do with that extra money. Maybe even put it towards a holiday home, or investment property, or building your super, or just taking a wonderful holiday somewhere.

Sooner or later, interest rates will climb again. There is no doubt about that. So taking full advantage of the low interest rates now, is in your favour.

Pending on who your mortgage is with, you might be able to put the additional payments into a redraw facility, in case down the track you need to use it for an emergency.

Some mortgage owners put their additional funds into a savings account to earn interest. But say $5,000 in savings a year, you earn $100 in interest and then taxed from the interest you earned. Would it be more for your end pocket if your savings were put against your mortgage?

Predictions are suggested that till the end of the year, one can feel safe for steady interest rates. If you want to consider changing mortgage lenders or are looking into refinancing, or planning to buy your first mortgage, then contact Australian Mortgage Managers today on 1300 799 266 or email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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