Avoid Mortgage Arrears With These Effective 5 Ways
Sep 01 2016
In layman’s language, an arrear is a payment that’s owed and should have been paid earlier. In daily life, mortgage arrears take place as a result from a person’s inability to pay the mortgage on time. If you are unable to make your mortgage payments on time, you can stand a chance of losing your property.
Mortgage Mississauga experts say that lenders might even take legal help so as to recover his mortgage ultimately bringing more apathy for you. To make sure you don’t become a victim of such a situation, here are 5 ways with which you can avoid mortgage arrears.
- Independent Debt Advice or Mortgage Counselling – Try to take some sort of independent debt advice or mortgage counselling immediately if you think you are heading towards financially difficult times as such measures can prove extremely useful. Your counsellor can give you some extremely precious advice on the different ways with which you can save money and multiply it as well.
- Lower Mortgage Interest Rate – Opt for mortgage renewal plans that offer a lower interest rate. Switch from a standard variable rate (SVR) mortgage to a fixed mortgage rate as they are lower than the SVR. This can help you save a lot of money and therefore you’ll be able to afford your mortgage payments with a lot of ease.
- Get Your Mortgage Term Extended – Going for an extended mortgage term may result in the payment of more interest, but will definitely help in reducing the monthly payment amount. Spreading your mortgage payments for a longer period of time can make you a bit strong on the financial front thus ruling out any chances of you falling in the trap of an arrear.
- Interest Only Mortgage – Try to discuss your financial problems with your lender and see if it’s possible for you to opt for an interest-only mortgage plan. This can drastically help to reduce your monthly mortgage payments and will bring some respite in times when you are facing a financial crisis.
- Mortgage Insurance – With the help of a mortgage insurance plan, one can definitely save him/her self from mortgage arrears. These insurance plans are comprehensive, affordable and a great relief when times are tough. They can help you make your monthly payments if you encounter an accident, get diagnosed with a health problem or are facing unemployment.
One needs to be extremely careful with his/her mortgage. Seldom do people realise that they are heading towards financially tough times. Hence, it is always better to be prepared whenever such a situation knocks your door. Mortgage counselling may seem like a waste of money, especially when you can’t afford to lose it, but according to mortgage Mississauga experts, going in for certain debt counselling service can be prove to be extremely useful.
We, at The Mortgage Division, provide the best mortgage services including refinance, renewal and debt consolidation.
Call us anytime if you wish to get more info on our services.