“Mortgages and Protection: A Borrower’s Perspective”
Owning a home or investment property – a significant achievement.
Buying a home or investment property is a major step towards financial security. The purchase will often be the result of many years of hard work and sacrifice.
Where money is borrowed to purchase the property, there will also be extensive ongoing obligations in the form of loan repayments. These obligations will sometimes continue for 30 years.
The impact of serious illness or death
People who have loan commitments need to consider the consequences of serious illness or death.
The effect of these events for a family will always be traumatic. There will also be financial consequences as a loss of income or incurring additional costs will impact on the ability to repay the loan.
Where the loan repayments cannot be made it is not unrealistic to expect that the family home or the investment property may have to be sold. Serious illness or death has the potential to lead to financial ruin for the individuals and their families where significant loan commitments exist.
Whilst little can be done to avoid the trauma that will inevitably occur, proper planning can minimise the financial consequences and help safeguard major assets.
People will always cope better with the emotional trauma when they are able to avoid any added financial concerns.
The role of protection
Insurance can protect individuals and their families from being forced into selling their home or investment property in the event of a serious illness or death.
An appropriate amount of protection can even enable the debt to be cleared in full.
Life insurance protection is a particularly cost effective way of providing this financial security and is a responsible action for people with loan commitments.
Protecting Your Home Loan
Another thing to consider, even though you may not want to, is what would happen to your home if you were no longer able to service the mortgage. If you passed away or were struck down with illness or by a severe accident how would your family meet the loan repayments?
We strive day in and day out to get our clients into the homes they want. You have worked so hard for your deposit, making your repayments, making your home your own… the last thing you want is to be forced to sell. During the application process we discuss what measures you have in place in case you cannot meet the repayments through death or illness and most of our clients have not considered it because they genuinely believe it will not happen to them.
Sadly, we have had clients lose their homes against their will because they or their family could no longer keep making the repayments. We would love to never have this happen to any client again.
How would you meet your loan repayments if you lost your job or suffered a serious injury, illness or even death?
– Use savings?
– Use Super?
– Rely on Partner’s income?
– Would family assist?
– Sell home or other assests?
– Not sure?
I am happy to offer you a loan and mortgage protection policy with Ali Group which is flexible and affordable. For as little as $14.74 a month (for a male, non-smoker) or $11.38 a month (for a female, non-smoker) you could have protection for $100,000.
The process is simple and easy and does not involve any medicals.
If this might something you are interested in, please give us a call now!!!
Certificates of Currency or Building Insurance
Before your lender will release the loan funds to you they require you to provide them with a Certificate of Currency, to ensure the home being mortgaged is insured against damage. Pride Mortgage Services can now offer this insurance service to their customers without having to consult with other companies. Getting the insurance policy can sometimes take weeks to organise and can therefore delay the settlement of your loan. You can, however, have this insurance organised for you from our office and have the certificate ready almost immediately to be faxed to your lender and know that the issue is taken care of without delay
We can also provide standard building and contents insurance. To not only protect the home itself, but all your belongings.
Your Other Insurance Needs
At Pride Mortgage Services we want to make sure our clients are appropriately covered. Even if we don’t stock the insurance product that meets your needs, we have alliances with insurance providers we know to be reliable, reasonably priced and comprehensive, so we can point you in the right direction.
To see how we may be able to service any of your insurance needs, contact us now.
Pride Mortgage Services provides expert lending assistance to the following areas: Penrith, Glenmore Park, Cambridge Park, Cambridge Gardens, Werrington, Werrington County, Werrington Downs, Cranebrook, Llandilo, Emu Plains, Mulgoa, Claremont Meadows, Orchard Hills, Kingswood, South Penrith, Jamisontown, Londonderry, Regentville and the wider Sydney region.
Pride Mortgage Services specialises in the following: Refinancing, Debt Consolidation, Home loans, First Home Buyers, Investing, home loan, credit loans, bank loans, cash loans, mortgage loan, loans interest, First Home Grant, first home owners, first home owners grant, home buyers grant, home buyers, first home buyers grant, finance, lenders, mortgage, mortgages, loans, loan, refinance and more.