Changes in the property market, increases in the costs of living and rising interest rates can all contribute toward mortgage stress and while repayments on loans or everyday expenses may rise, there are steps that you can take to help ease the pressures of increased expenses.
Health check your budget
Before cutting costs, it is wise to sit down and look at your budget. It does not need to be a complex task but should involve noting down the income and expenditure of your household and analysing where your funds are being allocated.
You may find that it is a great time to renegotiate with your lender on your mortgage, or other providers for insurance, utilities, while trimming unnecessary other expenses. You might also discover that there are some lax spending habits that could be tightened to relieve some pressure.
Purchase when you have the affordability
If you are looking to purchase a new property, talk with your financial advisor about your affordability range and the impact that rising interest rates and expenses may have. A financial advisor can also talk you through various financial scenarios and negotiate deals for lending.
Knowing your affordability and having pre-approval will also mean that when you are ready to buy, the finance is arranged, and you have a limit for the purchase price of your new home or investment.
Seek financial advice
Should you need to refinance, talk with your advisor about your options and what is available to you based on the current market, equity in your home and investments, rates, and your income. They will be able to provide you with advice and search for the best deal for you.
Talk to your lender about your current repayments and if you are paying monthly, there may be more options to change to fortnightly loan repayments which can have the potential to save you interest in the future.
Check your property value
While you may not be considering selling, it is good to know how much your property is worth in the current market and learn about the trends.
Our sales agents can also assist you with advice on potential improvements that may be needed and help you to uncover potential equity in the home that can assist in refinancing or investment opportunities.
For a free market appraisal, contact our agents to learn more about where your property is positioned.