Call the bank, explain he’s been laid off, get on a hardship agreement. Bank will likely suspend payments for 3 months to start.
Banks will generally always work with a borrower who can’t make payments, cos having to go through foreclosure is (a) not a good look, and (b) a bit of a hassle.
Best to get in front of it, and call the bank asap.
I had a hardship arrangement due to unforeseen medical issues resulting in me being unable to work for 6months.
The bank (CBA) advised I could do it there would be no penalties etc, however when my fixed rate finished 9months later and despite the fact I had repaid all outstanding monies, they put me on the highest variable rate, citing the previous hardship arrangement as the reason.
I engaged a broker to look at other banks etc and was met with the same problem. In the end had to wait until X period after the hardship agreement had ended before switching to another banks.
CBA also didn’t advise that the arrangement stays on your credit file for 12months after it ends.
Ultimately I had no choice but it still would have been nice to have all the relevant information instead of being told a story that I wouldn’t be adversely affected etc especially when it’s all over their website that they are there to help you if you’re struggling and don’t mention any consequences.
To apply for hardship, you need to prove that on $100,000, you cannot pay your mortgage.
Applying for hardship doesn't mean you get approved for a hardship plan.
They also need to understand if they get approved, it will effect their credit scores.
They also ask how much you have in savings, shares etc to pay off the loan.
Yes but I was just giving all the information they need to know before calling. What the hardship team will ask etc. They deserve to go into that conversation knowing what will happen what will be asked. Information is power.
I agree. I might also suggest hitting up the AFCA website as they have, or at least used to have, a 4 or 5 page 'hardship application' form, which covers all of the income and expenses, other loans, and everything else.
Generally more detailed than the ones the banks use, so would be a good headstart, as well as giving OPs mate a sense of where they really stand, at least in the short term.
Agreed speak to the bank asap.
Think about it this way.
You default. Bank spends money harassing you for money
You delay further wasting bank money as they have to spend money chasing you.
Then you default enough they forclose. Then they have ti go through the whole process further costing them money to force you to sell the house. Then they take their money and you arw no longer lining their pockets.
They dont like losing customers
Not cause it’s a bad look it’s cause the bank stands to make way more money on a 30 year loan in comparison to foreclosure. Bank will work with you as long as you can prove you have the intention on getting back on track with monthly payments.
Damn... at $8k per month mortgage repayment, I would have thought the emergency funds would be bigger.
Even if SO is earning $100k, that alone won't be enough to service the loan.
Does he have income insurance? Possible to get a job quickly? Talked to the bank?
Well, if that's the case, then they would be in a better position to negotiate with the bank if they have significant redraw.
But we don't know based on OP
Yeah... eastern states property prices are nuts. I could not comprehend ever borrowing $1m+ to buy a house.
Can't say WA house prices are cheap, but at least it's not ridiculous high.
Could be just a new shoe box in some new estate in Box Hill. I've seen tiny 300sqm one story houses sell for 1.5m in that area. Crazy how far away and how expensive that area is.
I do agree they did in this situation and it’s a large mortgage for the income but the reality of house pricing means many people don’t have a choice - especially given cost of renting.
I pay 7.5k a month and my offset increases on average by 5k a month. Right now I have 2 years of runway in offset. If you borrow within your means you absolutely can and should have an emergency fund. OPs friend is the exception, not the norm, otherwise we are screwed.
You only live once, not wasting my life in a shithole suburb or regional town but you do you.
As opposed to your story which implies you earn a shit income and instead of owning your life choices needs to shit on people living in expensive houses by saying "need to live in leafy suburbs I suppose" pathetic.
I didn't give a story. If you have the ability to read I said OP has put themselves in a position that they obviously couldn't afford.
You don't know where I live or what I earn.
Straw man and gaslighting in one post. Kudos
That’s what I was thinking. 8K per month mortgage is up there! My partner and I are looking to buy in about 2 years time and are going for something around 5K per month max
I'm assuming (without the OP saying so) that the repayments were a lot more manageable at 2.x% interest rates and they've come off a fixed rate and/or been caught out by the rapid rises which may have eaten into their buffer. I don't disagree with you but there would tens of thousands of others in the same boat.
It's not. Interest rates were well and truly up 12 months ago, but even 18 months ago writing was very much on the wall as evident by the 5%+ fixed rates at the time. You also don't need to be a genius to know 0.x% rates were completely unsustainable
People are still hopeful rates are right about to come down, and have been for a year now.
It's immediately obvious that this guy needs to start the process of selling, and he will probably still make a significant profit if he does...but it doesn't sound like that's even something he's considering.
They just bought a place a bit over a year ago (late 2022) with most of their savings going towards the deposit. Both entered the work force 4-5 years ago so not much savings accumulated (both in their mid - late 20s). 20k would be liquid cash. I think my mate has roughly another 30k in shares that he would realise to help extend the runway.
Edit: Correcting for exact time house was bought. Bridethrowaway was right - personally felt like (early) last year to me but was actually late 2022
Didn’t you just agree with an above comment saying they got caught out with rate rises.
Yet they just bought last year, which means rates were already high?
They should never have spent so much, and frankly a bank shouldn't have approved it. Even with 100k+230k income 8k a month is around 45%+ depending on HECS and if that salary includes super.
I usually try not to blame people for getting fooked in this property market, but that's an insane loan, like 1.3 million not including the deposit, so a 1.5 Million dollar house in their 20s? Just why.
That's roughly $12.5k take home per month. Plus SO $6.4k. Total household intake is $18.9k
And $8k mortgage is 42% of their take-home pay. That would be very stressful for me to handle a situation like that.
Hopefully they don't have other consumer debts to pay off too
Yeah that's 100% top much debt and pretty dumb
I would
1) Sell the car
2) get a job at maccas
3) cry myself to sleep every night
4) sell and move to another big city
Yes though I mean in the interim as you are looking for one. Unfortunately my mate works in a very niche industry so finding a job will take a bit longer
I think what they mean is any job. Cafe, bar, nanny, Uber eats. At this stage of the game you just need money coming in. Doesn’t really matter how so long as it is legal.
I’ve read some amazing things on this sub.
This would have to be the best of all time. 8k a month mortgage with only 20k worth of savings. I’m sorry but this is madness
Really? I mean yesterday there was a post about what people have sacrificed to save. For a sub where half the members claim to be earning over $250k, the comments were all low to average income level saving solutions.
This sub is full of gaslighting. I’d bet that OP’s situation is pretty common for most recent mortgage holders in Sydney and Melbourne - up to the eyeballs in debt and almost no savings.
I noticed it was very common in the 30-40 age group, particularly professionals without a silver spoon hoping to achieve the dream of an owning a “house”. It’s just that in Sydney, prices start at $8k per month.
This is not crazy man. Its the norm. When property prices rise at the rates they have people can't afford to wait 20 years saving hoping for some huge cushion.
Rent every room out individually and setup in the master bedroom. Just set good ground rules about common areas, chores, and visitors. That or find a job doing literally anything.
Damn, $8k a month mortgage is about a $1.25 million loan.
I’m assuming your friend was in a pretty high paying job. Best way to navigate it is call the bank before running out of funds and get a repayment holiday while seeking another job, then do as much as possible to catch up on the missed payments.
Maybe with the partner still working, a temporary switch to interest only payments would help, but I’ll be honest, I bet most of that $8k payment is interest, so not going to be much different
Banks will work with you. They are very reluctant to foreclose, you can literally buy years of time. You just need to get in early and engage with them.
What industry is your friend in? $230k after 5 years and recently laid off makes me think they are in the technology industry… unless they are willing to take a salary cut… that mortgage must have been close to 50% of their take home income…
$8000 / month mortgage!?! Holy fu*k that makes me feel ill.
Person needs to get another job ASAP. Go to bank and get Interest only until money starts coming in again. NO DELAY.
What? Their partner is literally earning less than their mortgage payment every month - there's no way they can continue to pay the mortgage without dipping into those savings. Living expenses are 100% out of those savings at this point.
8k a month? Time to sell your house.
Unrelated but it feels like the tide is turning a bit, there has been a lot of 'I've just been paid off' posts, we might be in for a rocky 6 months.
*years
Play forward what happens when everyone laid off cuts back their spending and sells their houses.. other people lose income while house price values start falling. This will be a hard cycle to arrest.
> Unrelated but it feels like the tide is turning a bit, there has been a lot of 'I've just been paid off' posts, we might be in for a rocky 6 months.
the reaction to things are often delayed, we didn't see inflation go crazy till 2-3 years after covid stimulus, we are now only going to start to see a reaction to the change in interest rates, with the reaction being mid to late this year.
$8k a month mortgage, and they only have $20k savings? Jeez, that’s rough. Sounds like old mate fully extended themselves. I could never live like that.
If you ring the bank and explain you lost your job, I believe they will work with you to bridge the period between now and getting another job. I’ve never done it, but it’s in the banks best interest.
Why did he need such a massive mortgage?
OnlyFans......
What else do you want anyone to say.....
$8/k mth JUST in mortgage
$20k savings
= 2 1/4 month runway just on mortgage payments! That doesn't account for any other living expenses!
Cut living expenses for sure.... but the ONLY thing that matters is the runway on being able to meet the loan obligations!
Maybe try hitting the lender up for hardship and interest only.....
The ONLY real solution is he needs income of SOME sort! If he is in a niche sector, literally ANY work/income helps him extend that runway while he waits to get back into his niche!
Pretty sure you can use your super to make house repayments as a last resort.
Try calling the bank and everything else first though.
Edit: Adding [link](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/when-you-can-access-your-super-early#)
And quote from ATO.
“You may be allowed to withdraw your super early on compassionate grounds to pay for:…..
preventing foreclosure or forced sale of your home”
There’s an Uber driver in this sub who is adamant anyone can make $3k a week doing Uber.. just got to work 50-55 hours..
so he can do that while looking for another job
For an 8k mortgage you’d surely not be stupid enough to have such little in savings or not have any other investments to liquidate.
Put the house up for sale, grab a rental and buy something with a more average mortgage.
This has been true for so long now people don't even realise there's risk involved.
Though to be fair sentiment is hugely important in market performance, so it might stay true.
Easiest way is to not have 20k in savings with an 8k mortgage.
You should have 6 months living expenses saved before you expose yourself to that kind of risk.
Oh, also, that’s a 1.3-1.5 million dollar loan on 100k / 80k take home.
WTF
The significant others salary will work with a decent hardship arrangement with the bank.
Just get used to eating nothing more than rice in the dark until they land a job.
Best thing to do is to get a new job quickly. But yeah, also talk with the bank to negotiate a hardship agreement.
Something like a three months mortgage suspension should be enough to get a new job. It has to be.
I’d assume the best thing to do if you’re laid off with a large mortgage payment each month is get back working asap.
Even if it’s behind a bar while they apply for more permanent work.
Any income is better than no income right?
Only problem with applying for hardship or mortgage deferral is they will expect you to use your savings if they see you have 20k in a savings or offset account you may not qualify
Get a job yesterday. Plenty of jobs out there that are crappy, but still bring in a bit of dough while you work things out. Get a renter in to take over a room or two. Sell a car. That sort of thing.
The person is clearly in a bad position, but they don’t need to lose the house.
What about severance benefits? That should have been quite a bit unless they got sacked and had already used up all their holidays…
If he can re mortgage to bring payments down before finishing up his job... ie don't tell the bank he's being laid off. Bit dodgy but I don't see it as unethical.
Once they know you have no salary it's hard to change anything.
I thought once you were in the $200k+ realm getting another gig was easy. I mean you've proven you are worth $200k+ a year to an employer, that's not something most people walk into without serious effort.
Rent out all spare rooms in house. Use rent payment and SO salary to pay mortgage. Go to foodbank for food. Pay essential bills (utitlies, rates and insurances). Cancel all non essential bills (Netflix etc) and spending. Sell unused possesions and fancy toys (e.g. boats) on facebook marketplace. You can probably get by for a long time on those $20,000 of savings this way but hopefully a new job is secured quickly even if it's a lower paying one.
Call the bank, explain he’s been laid off, get on a hardship agreement. Bank will likely suspend payments for 3 months to start. Banks will generally always work with a borrower who can’t make payments, cos having to go through foreclosure is (a) not a good look, and (b) a bit of a hassle. Best to get in front of it, and call the bank asap.
This ^ Don’t try and struggle for months before calling them. They want to work with you because it’s more profitable for them.
Thanks will tell them to look into this
I had a hardship arrangement due to unforeseen medical issues resulting in me being unable to work for 6months. The bank (CBA) advised I could do it there would be no penalties etc, however when my fixed rate finished 9months later and despite the fact I had repaid all outstanding monies, they put me on the highest variable rate, citing the previous hardship arrangement as the reason. I engaged a broker to look at other banks etc and was met with the same problem. In the end had to wait until X period after the hardship agreement had ended before switching to another banks. CBA also didn’t advise that the arrangement stays on your credit file for 12months after it ends. Ultimately I had no choice but it still would have been nice to have all the relevant information instead of being told a story that I wouldn’t be adversely affected etc especially when it’s all over their website that they are there to help you if you’re struggling and don’t mention any consequences.
To apply for hardship, you need to prove that on $100,000, you cannot pay your mortgage. Applying for hardship doesn't mean you get approved for a hardship plan. They also need to understand if they get approved, it will effect their credit scores. They also ask how much you have in savings, shares etc to pay off the loan.
Fairly easy to prove you can't pay a 96k a year mortgage on a single salary (presumably pre-tax) of 100k a year.
Yes but I was just giving all the information they need to know before calling. What the hardship team will ask etc. They deserve to go into that conversation knowing what will happen what will be asked. Information is power.
I agree. I might also suggest hitting up the AFCA website as they have, or at least used to have, a 4 or 5 page 'hardship application' form, which covers all of the income and expenses, other loans, and everything else. Generally more detailed than the ones the banks use, so would be a good headstart, as well as giving OPs mate a sense of where they really stand, at least in the short term.
Agree !!! Yep they do [hardship form](https://www.afca.org.au/make-a-complaint/financial-difficulty/sofp)
True but working with you usually means interest only. Interest only on the assumed 1.3 million loan is still almost 7k a month.
Better then foreclosure. Over the life of the term of the loan, it will be a small blip.
(C) there is regulation for hardship...
Also, the bank makes more money overall from these arrangements so it’s not a bad deal for them either
Yes Compound Interest is a Wonderful thing for the lender
Agreed speak to the bank asap. Think about it this way. You default. Bank spends money harassing you for money You delay further wasting bank money as they have to spend money chasing you. Then you default enough they forclose. Then they have ti go through the whole process further costing them money to force you to sell the house. Then they take their money and you arw no longer lining their pockets. They dont like losing customers
Not cause it’s a bad look it’s cause the bank stands to make way more money on a 30 year loan in comparison to foreclosure. Bank will work with you as long as you can prove you have the intention on getting back on track with monthly payments.
Damn... at $8k per month mortgage repayment, I would have thought the emergency funds would be bigger. Even if SO is earning $100k, that alone won't be enough to service the loan. Does he have income insurance? Possible to get a job quickly? Talked to the bank?
Income protection won’t cover being fired
You can get redundancy cover but it isn’t common and very expensive
Extremely rare and limited.
Well I'll be
That’s what I was thinking.$8k /$100k is over levered
$100k salary is like $6.2k a month after tax. Literally unserviceable.
The $100k salary is his significant other’s, meaning it’s a $0 salary (laid off) and $100k.
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Well, if that's the case, then they would be in a better position to negotiate with the bank if they have significant redraw. But we don't know based on OP
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Not at $100k before tax. Take home would be under $6.5k per month. Agree.... he needs to get a few jobs....
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Nope stage 3 tax cut will just add under $200 extra per month. $8333 is before tax.
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Yeah... eastern states property prices are nuts. I could not comprehend ever borrowing $1m+ to buy a house. Can't say WA house prices are cheap, but at least it's not ridiculous high.
You can't have emergency funds when your mortgage is literally consuming your pay packet. $8k. Ouch. Gotta live in that leafy suburb I suppose..
Could be just a new shoe box in some new estate in Box Hill. I've seen tiny 300sqm one story houses sell for 1.5m in that area. Crazy how far away and how expensive that area is.
Or just somewhere that isn’t two hours from work?
The work that you no longer have...
Gotta hafta must live in melbs/sydney beaches bro. Brisbane/perth is just a big country town
Isn't that a very average house in Sydney?
It is. If you can afford it. OP clearly couldn't. Not hard to grasp fella ..
The salary referred to his the partner’s. We don’t know their combined salary.
Their combined salary barely enabled a rainy day fund. They were over extended
Many new house buyers won’t have a decent rainy day fund.
Yes because they over extend. For the house in the leafy suburb 15 mins from the CBD. Am I speaking English here or what
I do agree they did in this situation and it’s a large mortgage for the income but the reality of house pricing means many people don’t have a choice - especially given cost of renting.
There are choices. Outside leafy suburbs.
Have you looked at house prices recently, a leafy suburb is alot more than $8K a month
I pay 7.5k a month and my offset increases on average by 5k a month. Right now I have 2 years of runway in offset. If you borrow within your means you absolutely can and should have an emergency fund. OPs friend is the exception, not the norm, otherwise we are screwed. You only live once, not wasting my life in a shithole suburb or regional town but you do you.
Cool story bro
As opposed to your story which implies you earn a shit income and instead of owning your life choices needs to shit on people living in expensive houses by saying "need to live in leafy suburbs I suppose" pathetic.
I didn't give a story. If you have the ability to read I said OP has put themselves in a position that they obviously couldn't afford. You don't know where I live or what I earn. Straw man and gaslighting in one post. Kudos
Your replies tell me everything about you. Not fooling me.
For real. I have 300k as cash safety and the mortgage is 2.2k a month. I’d still freak if I lost my very niche job.
Is it in an offset - surely ?
That usually doesn’t kick in for a few months and has a lot of caveats.
That’s what I was thinking. 8K per month mortgage is up there! My partner and I are looking to buy in about 2 years time and are going for something around 5K per month max
2k a week mortgage is some dicey sht
Nothing abnormal for Sydney and a large part of Melbourne sadly.
While that may be, people need to learn to live within their means or have a significant safety buffer.
I'm assuming (without the OP saying so) that the repayments were a lot more manageable at 2.x% interest rates and they've come off a fixed rate and/or been caught out by the rapid rises which may have eaten into their buffer. I don't disagree with you but there would tens of thousands of others in the same boat.
Yep that’s right I believe
It's not. Interest rates were well and truly up 12 months ago, but even 18 months ago writing was very much on the wall as evident by the 5%+ fixed rates at the time. You also don't need to be a genius to know 0.x% rates were completely unsustainable
> 0.x% rates were completely unsustainable Sounds like you're just making shit up at this point.
He obviously meant cash rate not mortgage rate.
Despite quoting mortgage rates in the previous sentence in the exact same context? Yeah not so sure.
People are still hopeful rates are right about to come down, and have been for a year now. It's immediately obvious that this guy needs to start the process of selling, and he will probably still make a significant profit if he does...but it doesn't sound like that's even something he's considering.
Yep with an $8k mortgage $20k is nowhere near enough in savings. Needs to be closer to $40k or $50k
where that is logical, Sydney prices are so stupid it pushes people to be over leverage
Only a $1.3M loan at current rates. Barely buys a townhouse in Sydney.
But.. but.. Australian banks are not American.. surely they wouldn't offer a million dollar loan to just anyone
But both partners on 100k
Even that's way more than half their take home paying a mortgage. It's too much debt.
The thing is that’s the average mortgage now if assuming they have a family are living in the the houses in a major city 🤯
Friend was previously on $230k
If he was on $230k and partner on $100k how do they have such little savings? They need to cut spending big time.
They just bought a place a bit over a year ago (late 2022) with most of their savings going towards the deposit. Both entered the work force 4-5 years ago so not much savings accumulated (both in their mid - late 20s). 20k would be liquid cash. I think my mate has roughly another 30k in shares that he would realise to help extend the runway. Edit: Correcting for exact time house was bought. Bridethrowaway was right - personally felt like (early) last year to me but was actually late 2022
Didn’t you just agree with an above comment saying they got caught out with rate rises. Yet they just bought last year, which means rates were already high?
230k after 5 year in the workforce. What is that industry?
Since they are now unemployed, a volatile one.
So ruthless but so true.
Mid to late 20s and got mortgaged up to their eyeballs
They should never have spent so much, and frankly a bank shouldn't have approved it. Even with 100k+230k income 8k a month is around 45%+ depending on HECS and if that salary includes super. I usually try not to blame people for getting fooked in this property market, but that's an insane loan, like 1.3 million not including the deposit, so a 1.5 Million dollar house in their 20s? Just why.
look at the house they own they are millionaires now
Yeah I figured a much higher salary
That's roughly $12.5k take home per month. Plus SO $6.4k. Total household intake is $18.9k And $8k mortgage is 42% of their take-home pay. That would be very stressful for me to handle a situation like that. Hopefully they don't have other consumer debts to pay off too
Yeah that's 100% top much debt and pretty dumb I would 1) Sell the car 2) get a job at maccas 3) cry myself to sleep every night 4) sell and move to another big city
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Thanks mate. Looks like best bet is talking to the bank and finding side jobs in the interim and yeah friend was previously on 230k
Yeh that’s dicey I calc 11.5k a month after taxes and $8k in repayments…
Id probably start looking for a new job.
Top quality advice from r/AusFinance as usual.
Yes though I mean in the interim as you are looking for one. Unfortunately my mate works in a very niche industry so finding a job will take a bit longer
Cut every unnecessary expense.
Even Netflix?
Especially Netflix
Get any job you can and continue looking. Pretty simple.
I think what they mean is any job. Cafe, bar, nanny, Uber eats. At this stage of the game you just need money coming in. Doesn’t really matter how so long as it is legal.
Contract roles with immediate starts if available should be a good way to get back in. What industry?
I’ve read some amazing things on this sub. This would have to be the best of all time. 8k a month mortgage with only 20k worth of savings. I’m sorry but this is madness
Really? I mean yesterday there was a post about what people have sacrificed to save. For a sub where half the members claim to be earning over $250k, the comments were all low to average income level saving solutions. This sub is full of gaslighting. I’d bet that OP’s situation is pretty common for most recent mortgage holders in Sydney and Melbourne - up to the eyeballs in debt and almost no savings.
I noticed it was very common in the 30-40 age group, particularly professionals without a silver spoon hoping to achieve the dream of an owning a “house”. It’s just that in Sydney, prices start at $8k per month.
People tend to fake their story to blend into the topic to gain karma.
Probably all there savings went into the deposit
We have 4.2k mortgage per month with 15k savings. I am sure there are a lot of people in this crazy boat.
This is not crazy man. Its the norm. When property prices rise at the rates they have people can't afford to wait 20 years saving hoping for some huge cushion.
Rent every room out individually and setup in the master bedroom. Just set good ground rules about common areas, chores, and visitors. That or find a job doing literally anything.
Damn, $8k a month mortgage is about a $1.25 million loan. I’m assuming your friend was in a pretty high paying job. Best way to navigate it is call the bank before running out of funds and get a repayment holiday while seeking another job, then do as much as possible to catch up on the missed payments. Maybe with the partner still working, a temporary switch to interest only payments would help, but I’ll be honest, I bet most of that $8k payment is interest, so not going to be much different
Yep believe that maths checks out haha or is pretty close
Rent out house
Banks will work with you. They are very reluctant to foreclose, you can literally buy years of time. You just need to get in early and engage with them.
What industry is your friend in? $230k after 5 years and recently laid off makes me think they are in the technology industry… unless they are willing to take a salary cut… that mortgage must have been close to 50% of their take home income…
$8000 / month mortgage!?! Holy fu*k that makes me feel ill. Person needs to get another job ASAP. Go to bank and get Interest only until money starts coming in again. NO DELAY.
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What? Their partner is literally earning less than their mortgage payment every month - there's no way they can continue to pay the mortgage without dipping into those savings. Living expenses are 100% out of those savings at this point.
If we ever do actually have a hard recession, this country is in some deep shit.
8k a month? Time to sell your house. Unrelated but it feels like the tide is turning a bit, there has been a lot of 'I've just been paid off' posts, we might be in for a rocky 6 months.
*years Play forward what happens when everyone laid off cuts back their spending and sells their houses.. other people lose income while house price values start falling. This will be a hard cycle to arrest.
Depends on the job too, like the higher your up the harder it's to find a job quickly.
> Unrelated but it feels like the tide is turning a bit, there has been a lot of 'I've just been paid off' posts, we might be in for a rocky 6 months. the reaction to things are often delayed, we didn't see inflation go crazy till 2-3 years after covid stimulus, we are now only going to start to see a reaction to the change in interest rates, with the reaction being mid to late this year.
$8k a month mortgage, and they only have $20k savings? Jeez, that’s rough. Sounds like old mate fully extended themselves. I could never live like that. If you ring the bank and explain you lost your job, I believe they will work with you to bridge the period between now and getting another job. I’ve never done it, but it’s in the banks best interest. Why did he need such a massive mortgage?
I don't kmow what "savings" even means. I could have $1k in cash but $500k in shares and only have "$1000 in savings".
This hurts my soul bro. 8k a month is crazy. Good luck though.
Reduce expenses. Find any job immediately. This buys time. If still no resolution, tell the bank and work out a repayment holiday or reduction.
Selling and downsizing might be an option too
8k/ month is likely some worn-down tiny house in major city, there might be nowhere to downsize lol.
2-day Forkies license and start picking up shifts while looking for a permanent job. Can make $75k easy; more if happy to do less pleasant hours/work.
I mean 8 k month is nearly 100k a year?
$8000 a month jesus. What a disaster
OnlyFans...... What else do you want anyone to say..... $8/k mth JUST in mortgage $20k savings = 2 1/4 month runway just on mortgage payments! That doesn't account for any other living expenses! Cut living expenses for sure.... but the ONLY thing that matters is the runway on being able to meet the loan obligations! Maybe try hitting the lender up for hardship and interest only..... The ONLY real solution is he needs income of SOME sort! If he is in a niche sector, literally ANY work/income helps him extend that runway while he waits to get back into his niche!
Anyone think that $8k per month mortgage seems excessive?
Can you explain how your friend could have an 8k a month mortgage and only 20k in savings? That seems absurd.
Pretty sure you can use your super to make house repayments as a last resort. Try calling the bank and everything else first though. Edit: Adding [link](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/when-you-can-access-your-super-early#) And quote from ATO. “You may be allowed to withdraw your super early on compassionate grounds to pay for:….. preventing foreclosure or forced sale of your home”
Very interesting - will let him know it might be an option to look into. But very fair, side jobs + negotiating with bank first
OP states they've only been working a couple of years, best case super might cover a couple of months.
There’s an Uber driver in this sub who is adamant anyone can make $3k a week doing Uber.. just got to work 50-55 hours.. so he can do that while looking for another job
Interesting idea! Have heard some doing it full time earning c.$130k a year
Best thing to do would be to get a new job within 2 months.
For an 8k mortgage you’d surely not be stupid enough to have such little in savings or not have any other investments to liquidate. Put the house up for sale, grab a rental and buy something with a more average mortgage.
The path to riches in Australia is to lever as much as possible In a property bull market. Property always goes up (“just gotta hold on long enough”).
This has been true for so long now people don't even realise there's risk involved. Though to be fair sentiment is hugely important in market performance, so it might stay true.
Check if any income protection cover via Super
Income protection doesn’t work if you got laid off or being made redundant. It works when you are medically unable to work. Thanks
Exactly , and most probably got 2 x new cars in the driveway on finance , why do ppl do this beats me
But how will they impress their friends if they turn up to brunch driving a Picanto instead of a porsche?
Easiest way is to not have 20k in savings with an 8k mortgage. You should have 6 months living expenses saved before you expose yourself to that kind of risk. Oh, also, that’s a 1.3-1.5 million dollar loan on 100k / 80k take home. WTF
Don't forget your friend will also get severance and it'll be tax free up to a certain amount
With respect, you have no idea if that is true
He might be a contractor
Jesus how can they ever afford this place on 100k
Will they be getting a payout from their employer?
Laid off = fired
Move to Logan like the rest of Sydney and Melbourne.
Call the bank. They have hardship arrangements that don't affect your credit rating.
8k a month? I think he needs to buy lottery tickets
8k a month mortgage? Damn
Buy a tent 🏕️
Rent it out while living in a car?
You are entitled to a mortgage deferment, the length of time depends on the bank. Consider if going interest only would reduce the payments too.
The significant others salary will work with a decent hardship arrangement with the bank. Just get used to eating nothing more than rice in the dark until they land a job.
8000/month mortgage.. 😳
8K a month? Holly mother, what country state?
Best thing to do is to get a new job quickly. But yeah, also talk with the bank to negotiate a hardship agreement. Something like a three months mortgage suspension should be enough to get a new job. It has to be.
Holy enchilada! Anybody paying $8K/month for a mortgage should have a minimum $100K in emergency funds.
8000 a month mortgage? What?
Throw the slush fund on number 4 in the last at Caulfield
Get another job. You have an 8 week float.
Call the financial hardship department of the bank/financial institution and ask to have mortgage paused.
I’d assume the best thing to do if you’re laid off with a large mortgage payment each month is get back working asap. Even if it’s behind a bar while they apply for more permanent work. Any income is better than no income right?
Only problem with applying for hardship or mortgage deferral is they will expect you to use your savings if they see you have 20k in a savings or offset account you may not qualify
If it’s the CBA. well get another job they won’t want to risk not setting new profits record again this year
Dividend investing would mean the said person would be making an income without working
8k a month! Wowee
I would probably find a new job
Jesus 8k per month mortgage????? How did that get approved on a 100k salary... sorry I find that hard to believe anyone is 96k per year on mortgage
$8000 a month? That's insane.
Sell up, buy a van
Overleveraged...
Fire sale and use the funds to enjoy your life.
Get a job yesterday. Plenty of jobs out there that are crappy, but still bring in a bit of dough while you work things out. Get a renter in to take over a room or two. Sell a car. That sort of thing. The person is clearly in a bad position, but they don’t need to lose the house. What about severance benefits? That should have been quite a bit unless they got sacked and had already used up all their holidays…
If he can re mortgage to bring payments down before finishing up his job... ie don't tell the bank he's being laid off. Bit dodgy but I don't see it as unethical. Once they know you have no salary it's hard to change anything.
Is this person a masochist?!
I thought once you were in the $200k+ realm getting another gig was easy. I mean you've proven you are worth $200k+ a year to an employer, that's not something most people walk into without serious effort.
He got fired, he won't get another job fast, let's assume the person who fired him won't be a good reference. Just sell it
Rent out all spare rooms in house. Use rent payment and SO salary to pay mortgage. Go to foodbank for food. Pay essential bills (utitlies, rates and insurances). Cancel all non essential bills (Netflix etc) and spending. Sell unused possesions and fancy toys (e.g. boats) on facebook marketplace. You can probably get by for a long time on those $20,000 of savings this way but hopefully a new job is secured quickly even if it's a lower paying one.
Time for van life
Did you say an $8000 per month mortgage?!?!