13 August 2009

Reduce mortgage repayment pressure

Consider these six helpful strategies to give your borrowers

  1. "There is some uncertainty about my job at the moment and I need to be mindful of what I spend. Are you flexible?"

    Suggest a repayment holiday, if your client is ahead on their repayments
    If your clients have a variable rate loan and are ahead on their repayments, they may be eligible to take a break from them for a while - a great way to free up some space in their finances.

  2. "My financial circumstances have changed and I am stretched by my repayments."

    Have your client pay Interest Only until they're more comfortable

    If the loan is eligible, you could suggest for your client to pay only their property loan's interest component, to take some pressure off now. (Be mindful that this will increase the repayment amount later.)

  3. "I would prefer certainty with my repayments rather than rate fluctuations."

    Fix the loan's interest rate for a certain future

    If your client has a variable rate loan and they're worried about rates moving, fixing their loan's interest rate for a period will protect them from any future rate rises - and give them the certainty of a monthly repayment that will stay the same.

  4. "I've got debt payments to meet on top of my mortgage."

    Move all debts under one roof

    A great way to reduce the overall monthly repayments is to consolidate all debts - such as credit cards and personal loans - into your property loan.

  5. "I'm not sure if I've got the most suitable home loan for my situation."

    Restructure the home loan

    If the client's mortgage isn't meeting their needs anymore, suggest a meeting and talk them through a range of options that may be more suitable to their circumstances.

  6. "What if I'm struggling to afford my repayments?"

    Talk to us, we can help

    Your client needs to feel comfortable in talking with their Broker to help them understand their circumstances and any financial stress they may be feeling. If so, you may wish to contact all of your clients to discuss their current circumstances.

Remember it is always helpful to record written notes of your discussions with your borrowers.
Best regards
Iain Pepper


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Iain Pepper
Head of Lending

Iain Pepper is a Vice-President and the Head of Lending for the La Trobe Group.Read full profile here.

La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 145 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.

Copyright 2010 La Trobe Financial. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial. Disclaimer

IMPORTANT: This message, together with the La Trobe Financial website (www.latrobefinancial.com.au) and all its contents have been prepared for general information only and should not be taken as legal or financial advice, and as such the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the La Trobe website. La Trobe Financial Asset Management Limited ABN: 27 007 332 363 and AFSL No: 222213 is the issuer and manager of the La Trobe Australian Mortgage Fund. It is important for you to read the Product Disclosure Statement for the Fund before you make any investment decision. You can get a copy of the PDS by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you. (1) The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund, and may achieve lower than expected returns. Investors risk losing some or all of their principal investment. (2) The rating report is available on the La Trobe website or upon request. The rating is only one factor to be taken into account in deciding to invest. (3) Withdrawal rights are subject to liquidity and may be delayed or suspended. (4) Rates (where shown) are indicative and for information purposes only and must be confirmed by your La Trobe loan manager upon formal application. Rates are subject to change. Please refer to http://www.latrobefinancial.com.au for full comparison rate schedule