Want to take a holiday from your mortgage?
Sounds delightful doesn't it? To go off on an extended holiday and not worry about making any repayments on your home loan, but what does a repayment holiday really mean?
If your mortgage is a fully featured variable rate home loan, then there is a chance that repayment holidays are also a feature that you can take advantage of on your home loan. Depending on the lender and your type of loan, this can be for a period of up to 12 months, and can allow for either a complete break in repayments (you pay nothing for the agreed period), or a partial break where you pay a reduced amount for an agreed period of time.
Whats the catch?
For most lenders, you must have already made additional repayments on your loan before being eligible for a repayment holiday, but this isnt always the case.
When can i take a repayment holiday?
In short, anytime you wish. Some possible reasons you might wish to take a repayment holiday are if you are taking a career break, starting a new business, renovating your home, or if your situation has recently changed and you are under financial stress, for example during divorce or while suffering from health problems.
If you have any questions regarding any of the information provided above, or would like to speak to one of our brokers about your home loan, please contact us on (08) 8224 0044.
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