Mortgage stress is not the worried feeling you get when the news is constantly filled with speculation around housing affordability, property bubbles, or interest rate rises. Instead, mortgage stress can be broadly defined as when your household’s income doesn't adequately cover the cost of your mortgage and other expenses.
RateCity spoke to Sydney mother of two, Natalie, about how she found herself falling into her banks’ fee traps, and how she’s choosing to break the cycle.
Whether you have a home loan, a personal loan or a car loan, it’s likely that you’d prefer your debt to be paid off as soon as possible. The longer you owe money to a bank or lender, the more interest you’ll be charged, until the total cost eventually exceeds any benefits offered by the loan.
APRA, or the Australian Prudential Regulatory Authority as it is officially known, is the prudential regulator of Australia’s financial services industry.
Home loan repayments are either made on a ‘principal and interest’ basis or they are paid by ‘interest-only’ instalments.
While there are certainly benefits to getting your mortgage from a major bank like Australia’s Big Four, it’s the smaller lenders that tend to offer the more competitive interest rates, fees and charges that give the big banks a run for their money.
Borrowers are doing themselves a disservice if they refuse to at least consider taking out a mortgage with a lender outside the big four banks.
^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.