Falling behind on your home loan repayments can be stressful, but don’t worry—there are steps you can take to get back on track. Here’s a quick guide to help you manage the situation.

1. Assess Your Financial Situation

Start by reviewing your budget to understand where your money is going. Calculate your income, expenses, and savings to determine if you can adjust your spending or redirect funds towards your mortgage repayment.

2. Contact Your Lender Early

As soon as you realise you may fall behind, reach out to your lender. Lenders are more likely to offer assistance if you notify them early. They might offer:

• Repayment holiday: A short-term pause on repayments.
• Payment reduction: Temporarily lower your payments to match your cash flow.
• Loan restructuring: Adjust the terms of your home loan to extend the repayment period or lower the interest rate.

Open communication with your lender signals that you’re committed to resolving the issue.

3. Explore Hardship Assistance Programs

If financial hardship has caused you to miss payments, many Australian lenders offer hardship assistance.

4. Consider Refinancing or Debt Consolidation

A mortgage broker can help you refinance your home loan by finding a lower interest rate or restructuring your mortgage to make repayments more manageable. If you have multiple debts, consolidating them into your mortgage may lower your overall interest costs and simplify payments

Using a mortgage broker ensures you have access to multiple lenders and options, increasing the chances of finding a solution that fits your needs.

5. Explore Alternatives

If financial challenges persist, consider alternatives before resorting to selling your property. Options include:

• Renting out a room or property: Generate additional income to support mortgage payments.

6. Seek Professional Advice

Consulting a financial adviser or mortgage broker can provide personalised solutions for managing your mortgage.

Final thought

Falling behind on mortgage payments doesn’t mean losing your home. By communicating with your lender, working with a mortgage broker, and exploring you can regain control over your home loan. The key is to act quickly and seek help before the situation worsens.