Many of us dream of owning a home, but with that dream comes the responsibility of a mortgage. Life can be unpredictable, and unexpected events can happen, which may affect our ability to make mortgage payments. Here are some "what if" scenarios to consider and how you can prepare for them.

1. What if I lose my job?: Losing a job can make it difficult to make mortgage payments. If this happens, talk to your lender as soon as possible to see what options are available. You may be able to take a payment break or reduce your payments temporarily.
2. What if I get sick or injured?: A serious illness or injury can affect your ability to earn an income and make mortgage payments. This is another instance where you’ll want an expert mortgage team on your side to help.
3. What if interest rates rise?: If interest rates rise, your monthly mortgage payments will increase. To prepare for this scenario, consider fixing your mortgage rate, which will protect you from interest rate rises.
4. What if there's a natural disaster?: A natural disaster can damage your property and affect your ability to make mortgage payments. You’ll need a mortgage team that can help you navigate all of the stress around payments.

In summary, owning a home is a big responsibility, but it's important to be prepared for unexpected events that may affect your ability to make mortgage payments. Talk to a professional mortgage lender as soon as possible if you encounter any issues, and be aware of the options available to you. By taking these steps, you can minimize the impact of unforeseen circumstances and ensure you're able to repay your mortgage over the long term.

Liz Peter Mortgage Team

Luminate Home Loans