Mortgagee sales are increasing as more people struggle with the high cost of servicing their mortgages.
TradeMe has 65 properties listed under mortgagee sale, an increase of 35% from a year ago.
A mortgagee sale happens when a homeowner can’t meet their mortgage payments, so the bank has to sell the property so the debt can be repaid.
The prospect of losing your home to a mortgagee sale is alarming, and no one wants this to happen to them.
It’s also not something that happens overnight: banks use this as an absolute last resort, so it’s likely that affected homeowners have been under mortgage stress for some time.
The good news is that there are things you can do to reduce your overall debt burden and regain some control over your finances.
Consider a debt consolidation loan
One way Loansmart helps people reduce their debt payments is through a debt consolidation loan.
This is where we take your existing loans (excluding your home loan) and combine them into one new loan at a lower interest rate.
Here’s a recent example from one of our customers: Dale and Jenny, a couple from Auckland, were struggling with debt repayments of $3000 a month.
They had several loans and credit cards, and with so much of their income going towards servicing their debt, they were struggling to make ends meet.
We were able to consolidate all their debt, including the credit cards, into a new $72,000 loan with monthly repayments of $1800.
With $1200 extra in their pocket per month, Dale and Jenny could breathe much easier and enjoy life a bit more.
Loansmart makes debt affordable
How were we able to reduce Dale and Jenny’s loan repayments by so much?
It comes down to two things: interest rate and loan term.
First, let’s talk about interest rates.
Loansmart provides low cost loans at fair and affordable interest rates. With rates starting at just 9.95%, we make it easier to borrow money without it costing the earth.
When we provide debt consolidation loans, our interest rates are generally lower than what our customers were paying on their existing loans. This is one way we can lower their repayments so much.
The other factor is loan term, which is the length of time the loan is taken out for.
By spreading the loan payments over a longer period of time, we’re able to save our customers significant amounts of money on their monthly repayments.
Loansmart offers terms from 6 months to 7 years, which gives us the flexibility to tailor the loan terms to suit our customers’ unique needs.
The benefit of using a loan broker
Loansmart is an online loan broker, which means we use our network of high-quality lenders to find you a great deal.
This is great for you because you only have to make a single loan application.
Not only is this convenient, but it minimises the impact on your credit score because making multiple loan applications in a short period of time can have a negative impact on your credit report.
By putting your application in front of multiple lenders, you get a higher chance of having your loan approved.
Want to find out how much you could borrow? Use our free loan calculator to see what your repayments would be.
If you want to get the ball rolling, just complete our quick online application form and we’ll be in touch to discuss your situation.
