How to lower my mortgage repayments

How to lower your mortgage repayments

Remember, a mortgage can run for up to 30 years, and your income is highly likely to change over that time due to any number of circumstances. Fortunately, you can take some steps to lower your mortgage repayments in a crisis.

Contact your lender as soon as you begin to have trouble.

First, you need to contact your lender and talk to them. If you’re unsure what to say, you can get your broker to speak with them on your behalf. Your lender should have a range of options for you, depending on the size and length of your mortgage. They also have hardship policies that could help you get back on your feet. Just be wary that while some of your lender’s solutions can get you out of an immediate pickle, they may cost you more in the long run.

Refinance your loan.

Depending on how long you’ve had your mortgage, you should have some equity in the property. This may allow you to refinance your loan for potentially better terms and conditions.

Look for a better mortgage deal elsewhere.

Jumping ship to another lender may be problematic if you’re experiencing financial hardship. Still, it may be easier if you have built up a certain amount of equity and you can negotiate a longer mortgage, for example. Once again, speaking to your mortgage broker may be beneficial because they may know what’s available for people in similar circumstances.

Move to an interest-only or a fixed loan.

You might be able to move to an interest-only loan for a short time to pay less each month. Just be aware that you’ll be paying a lot more in total repayments over the full term of the mortgage. Similarly, your lender may allow you to move to a fixed mortgage rate lower than the standard variable rate. However, these are generally only available at the start of a mortgage. At any rate, there’s no harm in talking to your lender to see what’s available.