There’s no denying that the COVID-19 pandemic has been challenging for many Sydneysiders, with slowing businesses, reduced working hours and even job losses.
Fortunately, many Banks and Lenders offered mortgage holidays to help people manage tightening budgets during these last few months.
However, they have now begun contacting borrowers who have deferred their mortgage payments to assess their financial situations and request that repayments start again – from as early as October.
Did you take up a mortgage holiday?
Have you been looking at your options going forward?
Now’s a great time to come up with a strong game plan for the rest of 2020 and beyond.
What happens when mortgage holidays end?
Mortgage holidays were designed to temporarily pause your regular mortgage repayments – however lenders aren’t simply waiving these payments.
Once the mortgage holiday period comes to an end, those missed payments will be added to the life of your loan. In some cases, due to interest, this could increase the total cost of your mortgage.
This means that you may need to have a little extra budget going forward to compensate, which has a lot of homeowners and investors looking at their options. Some people still haven’t fully recovered from this period, which means that trying to meet these repayments after the mortgage holiday ends could pose a bit of a challenge.
If you’re looking at alternative options, you may want to consider selling instead.
Here’s why.
Why selling your property after the mortgage holiday is worth considering
When the mortgage break is lifted, you’ll need to look at meeting your repayments again.
Depending on your circumstances, there are a few options that you can pursue, such as going back to paying in full, switching to interest only, refinancing and so on.
However, if you’ve been considering selling your home, it may be an opportune time due to the favourable conditions we’ve been seeing, especially across Sydney’s Northern Beaches.
Here are some of the reasons to consider selling your property after the mortgage holiday:
- The property market is booming, especially on the Northern Beaches – we’re witnessing an influx of demand from buyers, but the supply of homes for sale right now is limited. With plenty of people looking to buy, putting your property on the market will get a lot of attention.
- Quicker selling periods – With the low interest rate right now, we’re seeing both first-home buyers and property investors trying to take advantage by purchasing homes immediately.
- The interest rate will rise again – speaking of interest rates, they’re at such a low point right now that they’re bound to rise again, which can place further pressure on your interest repayments in the future.
- It’s Spring – the warmer months are always highly popular in real estate, with everything in full bloom. Buyers are typically more active over the next few months, which means more competition for your property.
In this difficult time where you may find your budget is a little stretched, selling your home to downsize or move may be a better option than you first realised – especially if you can get a great price.
To help you, your trusted real estate specialists at Upstate can make sure you achieve the results your home deserves.
Want to discuss your options after the mortgage holiday comes to an end?
We’re always here to help you.
As Sydneysiders ourselves, we understand this is a challenging time, which is why you’re in safe hands and understanding company with us.
Your local Upstate real estate specialists will make selling your property easy, well-managed and transparent. That’s because we’re a big agency, with the heart and determination of a boutique one.
Our personalised service will help you get the most out of your property and come out of 2020 in a better place.
Speak to your local Upstate team today and we’ll show you the possibilities that are earning excellent results.
We look forward to chatting with you soon.
Your local Upstate team.
