Below We have listed the main causes of mortgage related arrears and financial difficulty
There are many reasons people find themselves with mortgage arrears or default. There are a number of reasons noted below that increase the risk of finding yourself in arrears with your home loan, plus there are other factors that increase the incidence of mortgage default such as capacity to pay (diminishing an ability to meet commitments such as with gambling issues) along with loan type, interest rate and other factors.
Loan factors that affect arrears:
Studies by the RBA (Reserve Bank of Australia) have highlighted contributing factors to home loans going into arrears, and also default. There was found to be contributing factors noted below:
The factors above are important to understand as they assist in analysing the background reasons for home loan arrears. On its own the reasons are simply nice facts, however when included in the mortgage arrears assessment, they provide an effective snapshot to help create a complete loan solution.
If you have got behind on your home loan, then contact us for mortgage arrears advice today.