Every now and then, an unexpected event may occur in our lives that causes financial hardships where making repayments on a home loan is impossible. Financial hardships could result from higher interest rates which increase repayments, an accident, death, illness or loss of employment.
The government has a financial hardships provisions to help Australians struggling to pay their mortgage so defaulting on repayments and repossession is prevented. There are also insurance policies that provide different levels of cover from a certain number of repayments paid to paying out the balance of your loan in full.
Unexpected circumstances can occur to anyone at any time which can leave you with financial hardships so make sure you know your rights and the cover available.