Mortgage stress in Australia has become one of the biggest challenges for many families.
Mortgage stress refers to the condition where the homeowner spends a third of his gross income in repaying for a house mortgage. It becomes stressful because if not managed well it eventually leads to home repossession.
The sad fact is that many home buyers are going through severe debt anxiety due to the increase of the cost of living leading to financial strains.
Many people rush in to buy their property and sign up for mortgages without giving an account for financial uncertainties which are likely to occur in future. This is the reason mortgage stress is becoming common for many Australian Families.
There are some factors which lead to mortgage stress.
Some of them include:
Economic meltdown or depression.
Typically a country or personal economy undergoes various stages which are slump stage, the recession phase, the recovery stage and the boom phase. Since the mortgages are funded from money which is controlled by these stages, they severely impact personal financial predictions.
Sometimes you may have hoped for a mortgage support when an economy is about to enter boom stage. From here you will find yourself in a financial dilemma if the economy goes to slump or recession. Some of the analysis are not always 100%.
Another factor is an unexpected rise of the interest rates.
When apply for a home loan you must be prepared to pay more if there is a rise in the interest rates. This is a common cause of mortgage stress that is not factored into the equation when applying for a home loan.
Sudden unemployment, unforeseen sickness, natural calamities and job retrenchment will also affect your ability to repay your mortgage.
If you are falling behind on your Mortgage Repayments or you are facing repossession – and you don’t know what to do next call Property Solutions for Australia on (02) 8006 0420 and we can help you analyze the best options for you – BEFORE it’s too late!
Alternatively you can CLICK HERE to book in a FREE Consult today.