Frozen Loan & Overdue Repayment? What Are Your Options Now?
“Learn about your rights and responsibilities at the end of a 6-month mortgage deferral period, as many banks offer this option to homeowners due to the COVID-19 pandemic. Discover what steps to take to continue repaying your home loan after the deferral period ends.”
“Explore your options for loan repayment after a 6-month mortgage deferral period and potential 4-month extension. Learn what to do if your income does not allow for loan repayment even after the pause ends. Discover the different options available to you, as banks negotiate terms with borrowers during the 2nd phase of the repayment pause. “
Go for Interest-Only Repayments
“Discover the benefits of interest-only loan repayment structure. Instead of paying both principal and interest, learn how you can save money by only paying interest on your loan. Find out how this strategy can free up cash flow in your monthly earnings, making loan repayment more manageable.”
Longer Loan Term
“Explore the option of extending the loan term as a solution for high monthly mortgage payments. By extending the loan term, borrowers can reduce their monthly payments, making loan repayment more manageable. While the overall interest may be higher, this strategy can be a viable solution for those unable to keep up with current monthly instalments. Discover the pros and cons of extending a loan term in this informative guide.”
Fixed Interest Rates over Variable
“Learn about the benefits of fixed interest rates over variable rates for your mortgage. While the difference in numerical terms may not seem significant, choosing a fixed rate can save you a significant amount of money in the long run. Discover how even a small difference in interest rates can impact your finances and why a fixed interest rate may be a better option for budgeting and financial planning.”
Consolidate Your Debts into Home Loans
“Explore the option of consolidating your debts into your home loan as a way to manage monthly mortgage payments. By merging all your other debts, such as credit card balances and personal loans, you can free up your monthly earnings. However, it is important to note that consolidating your debts may require paying mortgage insurance to the lender if the consolidated debt exceeds 80% of your home equity.
Extension of the Deferral Period
Another option to consider is the extension of the deferral period, which may be offered by banks after the first phase of the repayment pause ends. This option is only recommended for those who genuinely need extra time to settle their finances.
In conclusion, the COVID-19 crisis has led to mortgage repayment pauses being offered to homeowners. With the end of the deferral period, it’s important to be aware of options to manage mortgage payments if you are still facing financial difficulties. Consolidating your debts into your home loan and extension of the deferral period are some feasible means to address this issue.”