Interest rates are on the rise

Interest rates are on the rise and many homeowners are anxiously expecting further rate hikes to be announced from the Reserve Bank of Australia before Christmas.

The increasing rates inevitably put strain on many households, and sometimes that strain can be significant. So, what happens if you can’t pay your mortgage?

 

Asking for help

It is okay to ask for help. In fact, it’s important that you ask for help early!

You may like to contact your bank and try to negotiate your current loan terms or contact a mortgage broker to see if you can refinance your property for a lesser interest rate to reduce your loan repayments.

It is certainly better to consider these options as early as possible.

 

What do I do if the bank has issued me a Default Notice?

There is specific legislation that defines when a bank can issue what is called a Default Notice, which is when you have not paid your mortgage repayments within the agreed terms of the loan.

The Default Notice may come directly from your bank or from their legal representative and is issued to your last known postal address.

Your options once you have been issued a Default Notice are:

• Negotiate your existing loan terms and pay the outstanding default
• Speak to your bank to see if you available to claim financial hardship
• Refinance with a new lender for a lower interest rate that may be more sustainable, or
• Sell your property on your own terms.

If you believe you are at risk of defaulting on your home loan, it is better to take action as soon as possible.

Your Coulter Legal Property and Development Lawyers can help guide you towards a solution that has the best possible outcome.

Phone the team today on 5273 5273 or head to coulterlegal.com.au

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