{"id":9549,"date":"2023-07-17T18:30:03","date_gmt":"2023-07-17T10:30:03","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=9549"},"modified":"2023-07-17T19:37:19","modified_gmt":"2023-07-17T11:37:19","slug":"5-ways-out-of-a-struggling-mortgage","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/5-ways-out-of-a-struggling-mortgage","title":{"rendered":"What Can You Do If You Can’t Afford Your Mortgage Payments?"},"content":{"rendered":"

Going through another sleepless night thinking about your overdue home loan repayments? The possibility of losing your home can be terrifying. Perhaps you\u2019re having trouble making ends meet because you or a family member lost a job, or you\u2019re having other financial problems.<\/p>\n

With the recent increases in the Overnight Policy Rate (OPR)<\/a>, most home owners will likely have to pay a few hundred to a few thousand ringgit more in monthly mortgage payments if you have bought more than one property on mortgage.<\/p>\n

Maybe things are not as bad yet, but you would like to prepare yourself with all possible scenarios, just in case. For those who took out a variable rate home loan<\/a> \u2013 you may want to know what your payments will be in the event the rate increases and whether you\u2019ll be able to make them.<\/p>\n

Regardless of the cause of your anxiety, there are ways to protect your home even in times of financial trouble. Here’s what you can do to save your struggling mortgage.<\/p>\n

<\/span>1. Negotiate with your lender<\/b><\/span><\/h2>\n

Do not be afraid to approach your bank. If you are having trouble paying your monthly repayment, your first step should always be to contact the bank that lent you the money.<\/p>\n

It may seem hard to believe for most but the banks genuinely want to help you to meet repayments because they would like to recover their money back.<\/p>\n

Tell the bank your problems and discuss your options with them. Be open to suggestions, such as temporary payment arrangements, lengthening the loan tenure, or even switching to interest-only repayments temporarily.<\/p>\n

<\/span>2. Cash out your EPF<\/b><\/span><\/h2>\n

If you have recently just lost your job, it may take you a few months before you can get back on your feet. One way that can help you temporarily manage your loan without an income is to make use of your Employee Provident Fund (EPF).<\/p>\n

EPF allows its members to withdraw from their second account to reduce or redeem their or their spouse\u2019s housing loan balance with the financial institution approved by EPF.<\/p>\n

This is only allowed for the members (or their spouse\u2019s) first home, and for second home if the first house is sold or disposed of ownership, but can be made once every year.<\/p>\n

Some of the criteria of members who are permissible to do this withdrawal are:<\/p>\n