At My Mortgage one of the most important things to us is you having the right home loan for your situation. We often stress that when you get your first mortgage, we'll structure it to fit you best, but over the course of a couple of years, there might have been some changes in your family, financial or personal situation.
How do we deal with this?
The best answer is that if something is changing for you, please contact us and let us know as early as possible. It's much easier for us to make a good robust plan for a couple of years if we're in the loop with where you're going and what you want to achieve. Some very common situational changes are...
- We're having a baby! Congratulations, one of life's most amazing steps. Often this can mean some changes financially, as you may drop down to one income or there is an increase in outgoings. These things can have a significant effect on your ability to repay your home loan, so we can help to re-structure this before it happens to make it easy.
- You've had a change in income. Most commonly if this is a decrease it can mean your borrowing ability will also likely decrease. If you were planning to sell and buy another house, or increase your home loan for renovations, it may be more difficult to do this. Giving you flexibility around this before it happens is key and we can help with that.
- You're going overseas to travel or work for a year. Often this can be simple, if you're renting out your house there are a few things to note here around earning income through rental investments, but often it pays to set up your mortgage so that if anything goes wrong or unexpected costs arise while you're away, you can easily cover them with a flexible home loan. Income requirements change quite significantly if you're working overseas and bank policy can be strict, so best to talk to us about the best way to structure this.
- You're changing jobs and industries. If you know you may need to make a change to your home situation (i.e. buy, sell or renovate) and there is a significant change to your work situation, again we can often set this up well to ensure you're not impacted significantly before the change in roles. Banks can view changes differently to you so it's best to get our advice on how to do this the best way possible.
- You're retiring or taking an extended break from work. Even if you have significant assets and even some passive income, if you're making a big life change like retirement or choosing not to work for a while, we may need to review your home loan before that takes place. It depends entirely on your situation so we can chat about the best way to set this up.
Resilience is key in many areas of our lives, and it's no different with your home loan. Being on the button of any changes and thinking about how they may affect your ability to borrow, to repay or to be adaptive will ultimately help you pay off your home loan faster.
We're your point of contact for advice around any of these things, and you don't have to be an existing client to take advantage of this. Get in touch today and we'll make a plan to make you and your mortgage more resilient.Adam, Claire and the My Mortgage Team