How To Manage a Mortgage With a Growing Family

March 1, 2019
Pregnant woman with husband

Juggling mortgage repayments with day-to-day living costs can be a struggle and for those planning to expand their family, home loan commitments can be a cause for added stress.

Child care and other costs associated with raising a child all put a strain on the budget, which may already be stretched from the transition of dual to single income.

The last thing new parents need to worry about is keeping up with their mortgage repayments.

There are a few things you can do to make your life easier and ensure you stay on top of your finances with a growing family. Here are our tips on how to manage a mortgage with a growing family.

Get planning

Young family in home

If you know your financial circumstances are going to change, for example that you’ll soon be taking maternity leave, it’s crucial to set a plan in place early on.

Being aware of your expenses and planning for reduced income eliminates a lot of the stress that comes with expanding your family while managing a mortgage.

Try to save money wherever possible and consider buying groceries and baby supplies in bulk and reduce how often you eat out.

Couples planning for parenthood may also consider alternate ways to generate income such as selling things around the house, doing overtime hours before the baby arrives or getting a side job.

Consider refinancing

Pregnant woman with husband

You should check on your home loan regularly to ensure it’s still the most suitable option for your family. Refinancing can be a great way to better manage your money by getting a better deal on your home loan.

You may find you’re paying for unnecessary extras on your current loan or you may have improved your credit score and can now qualify for a better interest rate.

You should shop around and compare different home loan products with your current lender and other providers to find the best deal. Websites such as Canstar or Finder can be used to compare home loans across multiple lenders.

It’s important to remember you may be faced with an exit fee from your current provider and application fees for a new home loan.

Speak to your lender

Young family in backyard

Financial circumstances can unexpectedly change as things pop up in life. Have a chat to your lender and explain the situation and how you are experiencing mortgage stress.

They may have some flexibility when it comes to changing your payment options, redrawing any available funds or moving to an interest-only arrangement for a short period.

If you think bills such as water, gas or electricity may affect your ability to keep on top of your mortgage repayments, contact your utility providers to discuss a more manageable payment plan.

Planning in advance for a change in your financial situation is the best way to avoid stress and hardship. Speak to your financial advisor about how to manage a mortgage with a growing family.

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