1 month grace on mortgage repayment

hi all,

i hope someone can give me advice... I'm embarrass to say that we're struggling at the moment with repaying our mortgage (PPOR and investment property) and have almost maxed out our credit card... my wife is on part time work to look after the kids... the bills have kept on coming and this is the first time i'm stressing out... When christmas coming along and more expenses, I'm wondering if it's possible the bank would give us 1 month grace... this should allow me to put all my pay to pay most of the credit card off and should put us back below the red...

From what I've read, they have options where you can request mortgage deferral for 3 to 6 months and fill out all these forms... I don't need that much and don't want to jump over too many hoops... Does anyone know if I was to call up ING and ask for 1 month grace and explain that I'm unable to make next months payment they would allow 1 month grace?

I don't want to ask them just yet cos I don't want this on our record if we can't. We're trying to hold out til Sep next year and then we'll sell the investment property
 
Are the loans currently IO? Perhaps it may be easier to switch these to IO if they are not already to free up a little more cash flow, which can then be redirected to the credit card and P&I terms can resume on PPOR.
 
no it's not interest only... Principle and interest if that's what you mean... even then it won't help... i need at least 1 month grace in order to give me some breathing space... I can always borrow money but want to leave that as a last option. nothing worse than borrowing money to pay debt
 
Call the bank and explain what's going on. They have various policies and procedures around dealing with people who are going through a tough period and will try to work with you to come to a solution.

If you simply miss your payment, they're not very forgiving.
 
Yes speak to the hardship area and ask for grace. They may be able to capitalise your next repayment temporarily until you get back on your feet.
 
thanks guys... yeah i wasn't planning on not paying cos I know banks are ruthless... I was going to call them and ask if 1 month is possible... Would this be recorded on my credit rating? worried about borrowing money in future and having this bite me in the ***
 
The banks remember everything you ever do with them, so it's fair to assume that this might be reflected in future applications with the same bank.

If you come to a reasonable agreement with them up front, it's not likely to hit your credit rating and thus is unlikely to affect applications to other lenders.
 
If you come to a reasonable agreement with them up front, it's not likely to hit your credit rating and thus is unlikely to affect applications to other lenders.

Yeah it would be interesting to see how this plays out with the new credit reporting regime from March next year.
 
Also I'd like to suggest, not going into a lot of debt for Xmas.
If your kids are small,they don't care how many presents they get.

If they are older, explain the situation to them.
Kids get too much anyways.


Talk to extended family members, if you exchange presents with them.
They may be secretly relieved, to cut down on their expenses too.

There are always things you can cut back on.
Good luck !
 
If things are that tight, then I would suggest you ask for a 3 month halt to payments. This will not put you behind much, but will allow you to get that credit card out of then way (THEN CUT IT UP or at the very least save it for genuine emergencies).

With any creditor you must be sure you can do what you say you will do. It would be better to ask up front for a 3 month halt even if you then put money into an emergency savings account, rather than ask for 1 month and then have to come back later and ask for more.

Whatever you agree on, make sure you make the best use of the money you are not paying off your mortgage.

And regarding Christmas, I agree with Kathryn. Even with older kids presents don't have to be expensive to be enjoyed. Spend time with them rather than money. A trip to the beach followed by an icecream can be just as much fun as a theme park.
Marg
 
Yes, contact the bank asap and explain your problem and also how you propose to fix things. You will get an extension no doubt - but the interest will be added to the loan, you won't get a freebie.

Also change the investment loan to IO. You are basically throwing away tax money by having it PI. You need to claim as much deductions as possible and use this money to help yourself get back on track.

You should also conisder whether you should sell the property now to get out of the mess. Whether you should or not will depend on your circumstances.
 
I don't want to ask them just yet cos I don't want this on our record if we can't. We're trying to hold out til Sep next year and then we'll sell the investment property

If you going to sell why not sell earlier and release the equity?

doesn't make sense hold on to something for an extra 9 months when you
going to let it go anyway and face hardship during that time ....

what if you cant sell in 9 months or what if you have more un-expected bill turn up? tenant could leave, not paying you rent, interest could go up? properties need maintenance etc....etc...
 
If you going to sell why not sell earlier and release the equity?

doesn't make sense hold on to something for an extra 9 months when you
going to let it go anyway and face hardship during that time ....

what if you cant sell in 9 months or what if you have more un-expected bill turn up? tenant could leave, not paying you rent, interest could go up? properties need maintenance etc....etc...

One of the reason maybe to capitalise Capital Gain Tax discount
t
 
ING is a tick and flick to go interest only but they are sticklers when it comes to repayment conduct (and everything else).

I want to convert an ANZ back to i/o, however I see it is a new loan application (!) - if you know your equity position has dropped is it best just to shut up and forget about it?
 
I want to convert an ANZ back to i/o, however I see it is a new loan application (!) - if you know your equity position has dropped is it best just to shut up and forget about it?

Yes a Spanish inquisition is required as Rolf would say.

If under 80% then a desktop may work in your favor. Easy enough to find out before opening the trap door.
 
thanks for all the feedback... I'm still deciding on what to do... A part of me wants to sell the investment property in feb rather than Sep.. the reason why I want to wait to late next year is that I'm hoping price will go up a bit more... get more back so I can knock a huge amount of the ppor...

yeah our kids our still very young and the oldest just wants a yoyo lol

we haven't been on a holiday for 3 years and my wife wanted to take the kids and the inlaws to the gold coast... things were booked early this year when finances were fine... too late to cancel and I just paid the rest of the accommodation..

we've never been this broke before and it's depressing...

I see 1 of 2 options... sell in Feb rather than Sep and just be greatful with the capital gains so far or go for 1 or 3 months grace... a lot of thinking to do
 
i just rang them and they said it would cost $250 to switch and seeing as though I have 2 separate loans with them, that's $500!
 
Yeah it would be interesting to see how this plays out with the new credit reporting regime from March next year.

There is money to be made with this regulation change -:)
One stock on the market going to kick *** in this space in the
Next decade ... Already starting life on the market at 40% premium
Disc I have holding in them
 
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