This loan is designed to assist those borrowers that are under pressure from their current lenders to refinance as they have had arrears on mortgage repayments.

People find themselves in this financial situation due to one off life circumstances such as illness, loss of employment, divorce etc. – and now have the capability to pay the repayments of your loan on time but can not catch up.

If you can’t make the repayments on your home loan due to ongoing income restrictions it then may be better to sell your home rather than refinance and just end up in the same situation again.

What are my options with Mortgage Arrears?

Home loan arrears are a very serious business that could result in the funder re-possessing your house and selling it to recover their money so any funder refinancing this loan will want to be certain that there will be no reoccurrence. People find themselves in this financial situation due to one off life circumstances such as illness, loss of employment, divorce etc. – and now have the capability to pay the repayments of your loan on time but can not catch up.

  1. Minor arrears due to a one off event (sickness, Unemployment etc) can be dealt with directly with your lender usually without the need to refinance especially if you are not too highly geared.
  2. Up to 2 Arrears can be refinanced by a specialist lender up to 80% LVR
  3. Over 2 Arrears can be refinanced by a specialist lender up to 75% LVR

It is important that you are proactive as the longer you leave it the more bank fees, default interest rate, lawyer fees and real estate fees will eat into your equity that you have in your home. If you can’t make the repayments on your home loan due to ongoing income restrictions it then may be better to sell your home rather than refinance and just end up in the same situation again.

It can be stressful if you find yourself unable to meet your mortgage repayments and you’re in danger defaulting. But you’re not the first person to face difficulties, and there is almost always a solution. You just need to talk to the right people at the first sign of difficulty.

Firstly Talk to your lender

You probably won’t want to talk about your mortgage situation. But the problem won’t solve itself and avoiding matters won’t help. Remember: your lender doesn’t want to foreclose your loan – it’s no fun for them either. So call and let them know what’s happening.

Talk to your other creditors

If you’re struggling with your mortgage repayments, chances are you’re maxed out on your credit cards as well. You need to talk to these people too. And any other creditors. Again, it is in their interests for you to find a solution. But you need to keep people in the loop. In these situations, silence is anything but golden

Each loan has to be treated as an individual basis so it is important to deal with a broker that has several options and is experienced in this category of lending.

The matrix above gives you an overview of product perimeters however it is best to phone or apply online so we can analyse your unique circumstance.

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