If you default on your mortgage for two months in a row, the bank may raise your interest rate.
Property purchasers take note! If you default on your mortgage for two months in a row, the bank may raise your interest rate.
When signing a mortgage deal, I believe that many people will merely follow the lawyer’s instructions and sign in a specified location. Many folks do not properly read the bank’s mortgage contract.
What if I told you that most of the banks’ mortgage contracts clearly specify that if the borrower defaults on the loan, the bank has the authority to raise the mortgage interest rate. Mortgage rates may be increased by up to 0.75 percent. What would you do if you found yourself in a similar situation?
You can go to the bank to negotiate if you default on your mortgage for two months in a row and the bank raises your mortgage interest. In general, if you repay your mortgage on a monthly basis for the next six months, the bank may drop your mortgage interest rate to the initial rate.
If you discover that you are unable to pay your monthly mortgage, you should notify your bank as soon as possible so that the bank can examine your situation and provide appropriate advise. It can also avoid being blacklisted or punished if a consensus is reached on repayment extensions, etc.
Finally, all borrowers should verify the current condition of their loans at least once a month to avoid the numerous complications that underpayment of loans can generate.
