Banking & Finance
5. Getting a Home Loan
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 22 Jun 2015
- Home loans require the customer to purchase an agreed property at an agreed price and to repay the money within a set timeframe. The repayment timeframe is generally 25 or 30 years.
- If you are unable to repay the money on your home loan you will be in default.
- Your lender will send you a notice asking you to fix it up within 30 days.
- You have to pay not only the default amount but recommence making the ordinary repayments as per your agreement.
- If you don’t do this the lender may seek to take further action including asking you to vacate the property or they may start legal proceedings to repossess your home.
- If your circumstances have changed and you are having difficulties repaying your mortgage it can be an incredibly stressful time.
- There are things you can do to avoid an escalation of the situation. As soon as you start having difficulties you should contact your bank. You can apply for a hardship variation as soon as you get into financial difficulties.
- If you cannot make the repayments and your circumstances are not likely to change you should seek advice from a lawyer to discuss how best to resolve the issue. They may be able to negotiate with the bank on your behalf or suggest strategies to minimise your economic loss.
- Our free Find a Lawyer directory may help put you in touch with the assistance you need.
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