Are your homeloan repayments rising as a share of your income? This is commonly referred to as mortgage stress. It is the biggest worry for many Australian households. Getting a better deal to lower your repayments is a way to stretch the budget further.
There are a range of measures being used by banks to reduce your mortgage repayments under hardship provisions. Unfortunately, most of these involve increasing the amount of interest you pay. Measures include extending the term of your loan, or switching your loan to interest only.
Some of these can also increase the interest rate on your loan making the problem worse. All of these methods extend the term of your loan and increase the total amount of interest you pay to the bank. Why don’t you decrease the amount of interest you pay to the bank?
Our Leg Up can help you get a better interest rate. Most banks are offering large discounts to loans with higher deposits, common discounts are 0.6%-1.0% lower interest rate than for new loans with less than a 20% deposit. Our Leg Up can help you get this discount now. Our Leg Up supports your loan, supports you to negotiate with the bank to get you the same rate as people with a 20% deposit.