Aaron WhybrowGeneral Manager, Strategic Mortgage Broker

Ryou on direct debit for home loan? Are you at risk of not paying the min #flexiblemortgagebroker

Name: Ryou on direct debit for home loan? Are you at risk of not paying the min #flexiblemortgagebroker
Uploaded: 2023-01-30T21:29:05Z
Channel: Aaron Whybrow
Description: Aaron Whybrow warns homeowners to check if their home-loan direct debit is set to a fixed amount or minimum payment. When fixed rates end and variable…

30 Jan 2023

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Aaron Whybrow warns homeowners to check if their home-loan direct debit is set to a fixed amount or minimum payment. When fixed rates end and variable rates rise, your old payment might fall short by $50 or $100 a month, triggering missed-payment reports and credit score drops from 900 to under 500.

Questions this video answers

January 30, 2023.

2.69%.

Around 4.8%.

$100, $50, $2.

From about 900 to under 500.

Hey, the way that you pay your home loan is via direct debit. Hey, it's Aaron, your bagpipe and mortgage broker. Did you know that if you have a direct debit in place, you either have a minimum payment or a fixed payment? Say that you're on a fixed rate at the moment and you have a fixed rate coming off and you have a fixed rate on your direct debit. If you still have that fixed rate on your direct debit, you've got to double check whether that's going to be enough in the rising variable rate interest rate. So if you have a 2.69% interest rate right now and it's going to move to say, 4.8 or thereabouts, and your fixed repayment is going to be $100 less, $50 less, $2 less, that can have a major impact if you're going to be underpaying your mortgage. And if you underpay your mortgage, the bank has the ability to mention that that is not repaid on your credit file and that on your credit file can change it from say 900 score to under 500 score, and that can affect your chances of finance. That is exactly what you need to check today. Do you have a fixed repayment on your direct debit for your home loan?