In the new pneumonia epidemic, Baiye Xiao, many workers have been cut working hours and disguised pay cuts, or suspended pay, or even joined the ranks of the unemployed. If you`re unlucky enough to be one of them, you` ll need to be honest with the bank and work with it to find a solution. So, when discussing with the bank, what kind of strategy should be adopted by the householder?
Step 1: Side by side, looking for banks to lower mortgage rates. For example, if you`re carrying a mortgage interest rate of 3.15% at the moment, you can tell the bank that you know that a mortgage institution offers an annual interest rate of as low as 2.65% to see how the bank responds, even if the bank fails to reduce the interest rate to 2.65% and to a little less than 3%.
You should know, if you are really unemployed, or salary less, to transfer the mortgage (Refinance) will have some difficulty. Therefore, if the real difficulties encountered in housing supply, the top strategy should be with the original bank, not eager to seek the embrace of other banks.
In general, the transfer refers to the termination of mortgage contracts with existing banks and the transfer of loans to a new bank or mortgage institution, during which the new bank usually re-evaluates the financial position of the housing and loan applicants concerned.
If you`re closed and do n` t get the current bank interest rate cut, you have to take the next step.
Step 2: Explain your suffering to the bank and propose to temporarily change the contribution model to "interest not available "(Interest-only). If the bank is still in trouble, you will take the third step.
Step 3: If you have a little savings in your savings account, you should transfer your savings to your mortgage`s hedge account (Offset Account), because the mortgage rate is always higher than the savings rate, so putting the money on hand into your hedge account will help you save your mortgage interest. In addition, you can always withdraw the money in the hedge account to emergency, very flexible.
Step 4: Apply to the bank for a "mortgage repayment holiday "(Mortgage Repayment Holiday), i.e. apply for a stay of payment of the monthly mortgage repayment. Certainly, if you have the ability, even if temporarily do not supply this, it is better to continue to regularly provide interest, like a homemade "DIY interest does not supply this way of repayment ", so as not to appear in the" situation.
You must know that even if the bank grants you a "mortgage repayment holiday ", the principal and interest generated during the period will always be repaid, just give you a little more time to save money to repay! If you`re struggling to pay interest, it may take you longer to fill the house..
If you can transfer the mortgage...
You can save interest on your mortgage if you have the conditions to transfer and successfully apply for a lower interest rate mortgage at other lenders.
Assuming your outstanding mortgage is A $400,000 and the repayment period period remaining 25 years, and the current annual interest rate is 3.15 per cent, you are expected to pay a total of A $578,460 in principal and interest during the period, equivalent to A $1,928 per month. If you move to a mortgage institution with a lower interest rate, such as an annual interest rate of 2.65 per cent, the monthly repayment will be reduced to A $1,825 and the full repayment will be A $547,450, resulting in a cumulative saving of A $31,010.
Of course, one of the prerequisites for a mortgage product that really saves you more interest is that you have a hedge account with which you can make additional deposits at any time to reduce the amount used to calculate interest; at the same time, the money in the hedge account can be withdrawn as needed at any time.
In addition, as a smart mortgage person, you can use your credit card to cover your daily expenses, and transfer the money to the credit card account only when the number of cards is due. However, the premise is that you have to pay off the cards completely every month, because the credit card arrears rate is much higher than the mortgage rate.
