How do we cope with the rising costs of our mortgages?

You’re not alone if you’ve looked at your latest mortgage repayment notice and been shocked.

Many clients have expressed concern (putting it lightly) about the increase in their repayments. Some have seen their monthly payment in recent times jump +30% or more. It’s even harder for those coming off fixed-interest rates which are now very, very low in comparison to the market rates.

Families are feeling the pinch. Between the mortgage, groceries, medical, school fees and...... well, everything else.

Fortunately, we’ve seen some families who have achieved budget relief in two areas: 1. Those who were paying for income protection policies in their own name have raced to try to get new cover which can be paid by their superannuation. It is possible and definitely worth looking into before cancelling any insurance policies. 2. Interest-only 'holidays' on the mortgage. These are harder to come by. They require a lenient bank and some preparation with your mortgage broker. In tough times, banks can be understanding and give a 6- or 12-month period where repayments change from principal AND interest, to interest ONLY. Make sure you speak with your Mortgage Broker before you attempt this; they can help you prepare for this conversation with the bank. For help with your mortgage repayments, please contact your broker.

For help with your insurance, please contact us.