Hi, my wife has just had a baby and will be off work for 12 months and we would like to get some advice on lowering our home loan payments. The loan is $420,000 and we currently pay $520 a week… the rate is 4.07%. I work full time as a contractor and earn between $1700 and $2,000 a week. Could we refinance or are there other options?
It is possible for you to re-finance but I would need some more information in relation to your financial situation. Also will depend on your status as a contractor. Please feel free to call me should you wish to discuss further.
0414 583 233
Firstly, Congratulations on your new arrival. :)
There is definitely an option to look at re-financing. I would be happy to help you look into your options.
You may also have the possibility to change your loan to interest only for a period of time while your wife is on maternity leave. This is an option that most lenders will offer but do not publicize. It is generally offered for a period of 5 years, twice over the life of the loan.
If you would like to make an appointment me to go over what other options may be available to you feel free to contact me.
Good on you for seeking some ideas around the options that may be available to you in this situation as there are a number of different ways you could do this and refinancing is one potential solution.
That being said, its often a good idea to research what is your lender could offer.
If you were to change your repayments, as suggested earlier by my peers above. Be aware, that some lenders may increase the rate for interest only that would see you paying the similar or sometimes even more than before.
Some lenders even offer a partial repayment holiday - it really comes down to the lender.
Often this is the best, fastest way to move forward.
0481 383 390
nicholas financial solutions
As others have mentioned there are many options in the market for refinancing or you could negotiate a plan with your lender.
Your rate is ok for a self employed person and depending on the consistency of your income and your living expenses you may or may not get a better deal elsewhere.
I would recommend that you give Jacqui or Peter a call and just see what your options are. It won’t cost you a cent and you will have a clearer picture.
Best of luck
It's hard to advise exactly what to do without knowing a little more about your situation. However in general you could -
1) Ask you lender for a repayment holiday. The actual holiday period would vary from lender to lender and depend on your exact circumstances.
2) Switch from Principal & Interest repayments to Interest Only repayments, although lenders frown on Interest Only repayments for Owner Occupied loans these days but they would look favourably on a request from you given your circumstances. The actual Interest Rate you pay for this type of loan (as opposed to the actual repayment) may be higher than what you are currently paying on the loan now.
3) If you have any funds in an Offset account or in a Re-draw if you are ahead on your loan payments, you could use these funds to make your mortgage payments in the short term.
I would discuss it with your existing lender and I'm sure they will have some solutions to offer you. If you wanted to have a chat first before you do this, please don't hesitate to give me a call.
Bayside Finance group
M 0418 547337
I trust your doing well - I'm curious to understand how your investigations have gone? Have you spoken to your current lender?
If you like, lets have a chat about where your at and we can develop the most suitable way forward.
0481 383 490