Rise High Financial Solutions

header logo of Rise High - Award-winning mortgage Brokerage Adelaide

(08) 7131 1149

Should you apply for a mortgage repayment holiday?

A mortgage repayment holiday is becoming increasingly popular. Read this article and what the video below to find out what a mortgage repayment holiday really is and its pros and cons.
Share this article with friends and family:
Facebook
Twitter
LinkedIn
Email
WhatsApp

Should you apply for a mortgage repayment holiday?

A mortgage repayment holiday is becoming increasingly popular. Read this article and what the video below to find out what a mortgage repayment holiday really is and its pros and cons.
Share this article with friends and family:
Facebook
Twitter
LinkedIn
Email
WhatsApp

Keep reading

What is a mortgage repayment holiday?

A mortgage repayment holiday is essentially a period of time where you don’t have to pay repayments on your loan. This period of time is often between 3 to 6 months. Having said that, you are still having to pay interest and fees on the loan during this ‘holiday’ period. This is because the interest and fees from that period, will be capitalised on the loan. As a result, this will increase the amount you currently owe on the loan.

Some lenders might even extend the term of the loan to match the repayment holiday period. However, some lenders do not extend the term of the loan. This means is that, after finishing your mortgage repayment holiday, your regular repayments on your loan could increase. Mortgage repayment holidays can hold long term implications therefore it’s important that you consider all the consequences before applying for one.

 Before applying for a repayment holiday you should consider these things:

  1. What level of savings you have
  2. What level of money you have in your offset account
  3. Whether you have any redraw available
  4. Whether you can go about this period without applying for a repayment holiday

The video above highlights the advantages and disadvantages that mortgage repayment holidays have.

To avoid any misconceptions about mortgage repayment holidays check in with the Rise High Team. We will them give you specialised advice regarding your specific situation and conditions.

Do you have any questions or comments? Please let us know in the section below or find out more about home loans and property investment loans. You could also contact us directly here!

Our suggestions for you:

Preparing for tax time

Preparing for tax time is upon us again! It’s time to start thinking about getting those taxes sorted, so we have the information you need!

Christmas Shopping: 5 Tips to keep your finances in check this Christmas!

With so many wonderful things happening during Christmas, it is very easy to overspend. Overindulging can leave you feeling a financial hangover well into the new year! Join our experienced broker, Katie Costa, and fantastic Director, Marissa Schulze, as they share their top tips to avoid a financial hangover this season!