13 August 2009
Reduce mortgage repayment pressure
Consider these six helpful strategies to give your borrowers
Remember it is always helpful to record written notes of your discussions with your borrowers.
"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.
"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.)
"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.
"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.
"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.
"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.
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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.
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