Having Trouble with Mortgage Payments? When to Consider Changing to Another Home Loan Lender

If you are having trouble paying your mortgage it could mess up your credit rating and land you in mortgage trouble. The possibility of losing your cherished home can be frightening and stressful.

Contents hide
1 When the Mortgage Doesn’t Suit Your Needs
2 Refinancing Will Help You Settle Other Loans
3 When to Shift Lenders

You must find a remedy quickly and restore your finances in order to resume regular mortgage payments.

But sometimes the bank just doesn’t understand your situation.

Perhaps the financial storm has lasted longer than you expected. Or maybe the mortgage no longer fits your current lifestyle.  Should you consider shifting to another home loan lender?

 

Read on and find out how you can salvage the situation and change the lender.

 

When the Mortgage Doesn’t Suit Your Needs

Mortgage lenders in New Zealand must follow the Credit Contracts and Consumer Finance Act (CCCFA). On the other hand, mortgage brokers must act with “skill and care” guided by the Financial Advisers Act. This is to ensure that the loan is affordable and that you can “make your loan payments without suffering substantial hardship.”

 

However, your circumstances may change in the middle of the mortgage term. It may be a strain to continue paying your mortgage in your current status.

 

When a mortgage doesn’t suit you, you have an option to reach out to the lender and restructure it. But, this only applies when the mortgage is not in arrears. Also, you may have to contend with breaking fees.

If the loan no longer suits your needs, and the bank is unwilling to understand, urgently reach out to a trusted mortgage broker.  You need immediate help to plan your finances and take look at options such as emergency refinancing.

 

Refinancing Will Help You Settle Other Loans

One of the options that will be available to you when discussing with the mortgage broker is refinancing. You can refinance within the same lender – when you borrow against the home’s equity. Or it can be with a different lender. That is when a different lender “buys-off” the mortgage.

The bank may be unwilling to refinance your mortgage especially if you’ve missed a couple of payments.

Before you consider refinancing with a non-bank lender reach out to a trusted mortgage broker to give you an unbiased view of what to expect according to your circumstances.

If you have been servicing the mortgage for a while, and you are facing financial headwinds, emergency refinancing could give you the lifeline you need.

 

When to Shift Lenders

Emergency refinancing comes may come with a fair share of costs and technicalities. It’s advisable to walk through the entire process with a trusted mortgage broker and legal advisor. It is also recommended that you seek an alternative lender to take up the mortgage once you’re are back on your feet.

Lenders in New Zealand have different criteria and sometimes the best options for saving your home could be in non-bank mortgage lenders. However, such a decision should be guided by an objective assessment of the costs versus the benefits of each option.

There may be no cash savings. But a different lender could give you more flexibility or better rules. This could be what you need to avoid a mortgagee sale.

Whatever’s causing you to have trouble paying your mortgage, emergency refinancing can help you keep the home. Just reach out to a trusted mortgage broker to help you through the process.

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