Mortgage stress is hard, so here are three good reasons to call your lender now

Affording your home is important: mortgage stress can drain your finances and mental health, and evidence suggests it’s mounting in Australia.

Indeed, a survey conducted by Mozo at the beginning of the year showed 73% of borrowers would be maxed out financially after four 0.25% rate rises. That means only 27% of borrowers surveyed can absorb another RBA hike this year – and the rate cycle is far from over .

So if mortgage stress has hit home for you, here are three good reasons to call your home loan lender right now.

According to Mozo’s survey, 50% of surveyed borrowers hadn’t thought to call their lenders and negotiate their mortgage interest rate – and 17% didn’t know they could.

While we’re used to variable interest rates changing, it’s vital to remember that you can have a hand in their change, too. A lender would rather lose some money by giving you a lower interest rate than lose your business altogether when you refinance.

Call your lender today to see if you can score a more competitive interest rate. If they’re unwilling to play ball, compare home loan offers on the market to see if you can switch and save.

There truly is no shame in asking for help financially, and new regulations mean customers who speak up get rewarded. If you call your lender and need to push the “help” button, i.e. declare financial hardship, it doesn’t count as a red mark on your credit report or bring down your credit score .

This rule change means you now have nothing to lose by asking your lender for help: in fact, it rewards you for taking ownership of your financial situation and looking for solutions. Mortgages are a significant expense – it’s best to stay on top of your repayments before they get out of hand. Your proactivity is a strength, not a failure.

A home loan is a significant debt, but you likely have other debts competing for your hard-earned money, too, such as credit card payments or energy bills. Your bank can help you tackle these first so you leave your mortgage repayments alone.

Credit card lenders may temporarily arrange interest-free repayments for you, and energy providers may help you develop a long-term arrangement to help you get back on track. Some mobile and broadband providers may even offer you a temporary discount to keep you on their plans. Not every service will work with you, but you’ll be surprised how many will.

Remember: your business is valuable. If a company doesn’t try to keep you, they’re not worth keeping in your budget !

Compare refinance home loans below.