I am desperate for some quick money raising ideas to pay my home loan arrears. So far I have sold a lot of items on Marketplace. I am on a pension and my interest rate has risen. I have been struggling so much lately. This is my last hope for ideas. So please help with sensible suggestions. If I can't sort this out, I've had it. Everything I worked so hard for will be gone.
Mod Note: Removed link - Solicitations for donations for personal causes and crowdfunding campaigns are not permitted.
Yeah - see if you can get hold of their hardship program from your home loan provider. However, given there is a few more interest rate rises to go you may have to think of other options. They probably won't do interest free forever.
Potentially renting a room might a goer. But note that is subject to income tax as well - and may impact your pension.
A gruesome measure is early access to superannuation for hardship - note that this will bite you down the track but if your super balance is poor and not growing anyway might not be a bad idea.
Get some financial advice you can get it from a local free provider. National Debt Helpline is good - https://ndh.org.au/
With the fiasco of bank failures in the last week, the futures implied cash rate has dropped considerably.
Current market expectations is for no further rate rises, and potentially for rate drops later in the year.
https://www.asx.com.au/data/trt/ib_expectation_curve_graph.p…
What bank failures ?
There hasnt been any in Australia. Banks have been failing in say many banana republics ike Venezuela and life was fine here.
Banks fail all the time thats how capitalism works, businesses start and others fail.
Banks often charge higher rates for interest only so be sure as to how much benefit there is in doing this.
Its pretty obvious they arent going to be earning an extra 50% in the next few months, so how will they cover when interest rates make their repayments jump by 20% ?
Answer they cant better sell while they can rather than have the bank grab the house and sell it for whatever they like.
In this situation you are basically treading water till eventually you are forced to sell your place. Sell it now while you are ahead, take out the equity and find some government housing. Considering you are on a pension you should have done this at the height of the market.
Being on a pension and having a mortgage can never co exist, interest rate rises were just a matter of time.
+1
Govt pension and mortgage??? How on gods green earth did this ever pass the sniff test? There's info missing here as doesn't add up.
Definitely a take your losses now or hang on and lose a lot more later situation based on this scant info. Sorry but this sounds like a financial palava and working through with your lender or Govt financial trouble lines ASAP would be best but sometimes you just have to lose the battle to win the war.
Govt pension and mortgage???
I don't have a mortgage but I do have lines of credit from before I got sick. I wouldn't be approved for them today, but the bank never pulled them.
Circumstances can change a lot faster than the decades it will take to pay off a loan.
Sell your house and move to the country - far better lifestyle and you will have money left over.
maybe so but as your circumstances change (like retirement on gov pension) with such a large liability the number one item should be planning for how to get rid of that unaffordable liability hanging over your head before it sinks you.
Very true
Government housing isn't quick to get. It could be years or decades before you get it.
Also private rental may be more than the mortgage repayments.
I'd say hang onto the house as long as you can, in the meantime get yourself a boarder.
I can't agree more. Try to get out while you have time !
Did you buy this property when the rates where low ? How did you manage to pay till now ?
They probably had a job, but now are old with no job
It's a shame people have to go through this
This is a popular comment but I would stay under the mortgage as much as I can due to the massive backlog of government housing (430k?) and the rental crises.
That is like a stepping stone to a homeless.
In some areas, it's cheaper to pay a mortgage than to rent. Maybe OP took the mortgage, before getting a pension.
There are many more great ideas in this thread, hang in there buddy.
They're stuck between a rock and a hard place, but OP has resorted to flipping junk on Marketplace which is not exactly a long-term solution. Sure, they'll make a few more repayments, but what happens when it finally catches up?
To be honest, I'm not even sure if OP's story is even real. The best OP came up with was selling a lot of items on the Marketplace, and the go me fund page.
For me, that's s sounds like a poor effect. Plus we have no idea, how many people living in the house, and equity is left in the house.
However, there are a lot of good ideas in this thread other than selling the house.
Also, you become ineligible for public housing if you have more than a certain amount of wealth (~$10K in Victoria and 100K in Queensland). Selling a house you part own will make you ineligible unless you hide it from the state (cash in safe or Cryptocurrency?).
Welfare isn't designed to lift you up (such as helping you own a house), it is designed to keep you miserable and dependent.
I know someone who has a mortgage on an apartment but can no longer work due to psychiatric issues. They have a boarder though which reduces repayment stress, but money from a boarder that is spent paying off a mortgage is counted as work income.
Personally I believe the government should give interest free housing loans to poor people who have demonstrated good financial management. This would be superior to housing commission.
Or… its designed as a failsafe to sustain life, not lifestyle.
No one deserves to be given stuff for nothing. Be grateful its there at all rather than complain about, because without society, mother nature wont treat you so kindly.
Speak with a financial counsellor. https://ndh.org.au/financial-counselling/find-a-financial-co… Unfortunately any sort of get rich quick scheme is unlikely to work.
Rent out a room in your home to a student? There could be more pain to come with interest rates.
I did this when I bought my first unit, had 7 people over 4 years without any issues. I was quite picky though so it would take a few weeks to get someone.
Never had any issues with rent being paid on time.
Sorry to hear.
As above, I'd recommend taking on a boarder to increase your cashflow. Even AirBnB a room if you need to.
And you should also speak to your bank. They may give you options you are unaware of.
Rent out two rooms even. Students will live anywhere, even with their landlord.
oh man never again though…a retired lady bank manager who would make us all eat together at the dining table and talk politics… and you had to talk.. the other students were "fancy" students and then there was me, the ol' countryside "there all crooks".. needless to say i resorted to drinking a lot of wine with my meal…
(a few years later i did have a roommate but i left them alone)
lol, sounds like a scene from a comedy. I think it's charming when a landlord renting out a room insists on cooking for and kinda babying their tenants. Though annoying to have to eat on their schedule.
@AustriaBargain: i didnt think it was amusing at 19 when all you want to do is see girls, concerts and get smashed (i had just come from a boarding school in which you had to return by 7pm with class ending at 1800- i suppose thats a whole other comedy from which i was nearly expelled)
thanks your comment made me see it in a better light, the dinner was in the contract, i suppose i got fooled by the idea of free food ( i did leave after 4-6 months)
Sadly just remember your not the only person going through this…. there are 1000's of others… some good suggestions above.
Might Definitely need to downsize.
I hate to be the devils advocate
It's only going to get harder.
If you have any super that's still preserved, you can make an application to release some of it to prevent the foreclosing of your home
https://ndh.org.au/debt-solutions/access-superannuation/earl…
Problem is that opportunity is about to be shut by the Federal Treasurer.
https://www.news.com.au/finance/economy/australian-economy/e…
Yup, pretty much the only options are mentioned above. Downsize or rent areas of house to uni students. Considering the current rental crisis it might work out well.
There is also an option of a longer loan, but since you are on pension, I don't think banks will be willing to do that
Just bear in mind if you rent out the rooms, of actually lodging if you include electricity, that some international students like to run AC all day every day. They might not be used to dry heat and what you consider to be perfect weather might be too cold for them. So just budget them running their AC/heater all day and their TVs and computers etc. so it won't bother you if they do, and if they don't then it's mo money for you.
how much money and what time frame are you talking about? Might be able to pick up some side hustle to make some extra cash here and there. There are few different side hustle that you can look at like doing market research focus groups, doing online survey or picking up some freelancing work online or do some Matched betting or if you got a good voice you can look at becoming an audiobook narrator.
OP is a pensioner. What's the likelihood of them picking up any of these side hustles? They can't just become a freelancing digital nomad and live the #vanlyfe. And where exactly does one sign up to be paid to be an audiobook narrator, because sign me up.
Also, in the few market research surveys I've participated in, they've been very proactive about finding participants. You need to fit a certain demographic that actually spends money, e.g., young/single/professional, etc., no one wants to pay to know the spending habits of pensioners about to lose their home.
fair enough. I try not to judge people based on their age, Op is aware about ozbargain forum and posting here so they are more digitally aware then most of the my friends who are in 30s and 40s
Probably because it is not funny any more especially in a thread like this one.
name checks out, this thread is ridiculous considering OP was trying to scam people out of their money
Working at elections, and exam invigilation for universities, schools and government testing (e.g.. selective and OC intake) are popular jobs for seniors.
Not as quick as selling your stuff, but more sustainable.
It's very sporadic work. How many elections or selective school exams can the OP get involved in before they default on their mortgage? Those sorts of jobs are essentially seasonal side gigs, like when teenager fold shirts or flip burgers over summer for a bit of pocket money. It won't make an iota of difference to whether they can service a home loan. Sounds like the OP needs full time paid work which can affect their pension.
By the look of the moderator's edit, OP was just angling for donation and crowdfunding….
I have less sympathy for people who are on the pension but have a big mortgages - it means you have been living way beyond your means…. thats a lifestyle choice.
Learn to be financially responsible.
OP says they left their job due to anxiety and depression in the link. Hopefully they're getting treatment for their anxiety and depression …
Yeah but Bargaintits is a detective
Bargain-it-is is my name :D
your (intentional) typo made me laugh
@smartazz104: mate it is…playing on both it-is and itis. I thought I was being clever playing on words …. now I gotta explain this sh1t….sigh….
i'm also anxious and depressed - gimme money pls.
did that work?
I can release my $100 donation to you on receipt of the $20 processing fee
@MrThing: My bank charges a $30 initiation fee (which i'll eat) so just send me $80 ($100 less your $20) - $30 = $50 and we are good?
BSB 069 069
ACC: GFY
@Bargainitis: A/N EAD worked and so did BSB 69 69 69
Had to sent it via bitcoin but, was through FTX, but then it went broke. rektrading said this would never happen
I would be too if I had bargainitis and there were no bargains to be found
You can't leave a job and expect other people to pick up the pieces because you don't want to compromise.
Yes it sucks but at the end of the day people are out there working jobs unable to afford houses because people over commit and don't want to accept that they've cooked their financial situation.
This is their first post too and already asking ozb for donation…
1st thing you should do is delete your ozbaragin account!
pretty sure ozbargain is first step to being more frugal…. we all need new monitors and cheap holiday packages!
and a new phone every year, $3000 video cards, overpriced patagonia puffer jackets, ugly & expensive sneakers, $150 slabs of craft beer….etc etc etc
so we agree they should keep the ozb account, right?
Capalaba is not exactly a cheap suburb. You should sell up and move elsewhere rather than asking strangers for $8k.
I don't mean to be negative, but if you're trying to support an ever-increasing interest rate mortgage (Assuming you're on a variable rate) on a pension then unfortunately it's not going to end well, all the suggestions except for getting full-time employment are just going to be Band-Aid fixes in the very short-term. Please keep in mind that interest rates are suspected to keep going up until atleast the end of 2023.
Getting a full-time job to support that mortgage will likely be the only way to offset the weekly, fortnightly or monthly repayments effectively.
In saying that though, refer to the list below which are my suggestions to help bring in some $$$$
All the best @tmh186, I really hope everything works out in your favour
All of these are excellent suggestions.
Couldn't you reset the loan term? This is my plan for if they hit 12%
Get ready mate.
We will be in recession at 7%, not going to 12%, no even possible
Its got to 17+% before…. in the 80s'
we had far less debt back then.. DTI is far higher now
Crowdfunding? Why should strangers pay for your financial mistakes?
Something just doesn't feel right …
spider troll senser are tingling
It's like you want to help them… but it's just so Pamesque you're waiting for the unintended punchline…
Don't worry about your arrears for the moment. What is your medium term plan (hoping that interest rates fall significantly in the next year is not a plan)? That is, if you get back on track, how will you pay the interest? If you can't manage this, then the best option is to sell now.
In the mean time, ask your back if you can just pay interest only. Take in a tenant or two to help pay the interest and principal.
Perhaps check out airtasker, you might find some odds and ends locally you can do
Good luck!
hows ur liver br0
You have a house and presumably $$$$ in equity, it's honestly insane that you're asking random strangers online for charity when there are people in actual dire need struggling to afford the bare essentials
If you're on a pension and you own your own home then apply for this: https://www.servicesaustralia.gov.au/home-equity-access-sche…
You'll be able to get 1.5x of your current pension, with that extra amount added as a loan against your home equity, not ideal but surely better than selling everything you own
Most sensible answer yet but I think this is a troll. Either way, the advice may help other people genuinely in this situation scrolling through.
@Jolakot
A friend in a similar situation submitted a claim for this on 30th December and is still waiting for a decision. 😐
It's UP TO 1.5x the applicant's current pension.
I saw this when googling, isn't that like borrowing more with a interest to pay current interest repayment? Maybe better if you need a car or something or you got millions in equity.
It's not repayable until the property is sold.
Basically, except the interest stacks up against the equity with no expectation to pay it back until the house is sold
I didn't realize the wait times god so bad, a relative of mine did this early last year and it only took 2 weeks for it to be approved, but they owned their house outright without any mortgage so it was probably an easy case
Contributes nothing to the community but wants us to crowdfund them? lmao
1 post ever, not content for assistance in wisdom now asking for donations for a self caused problem that many folks wish they had (significant equity in real estate). OP should be ashamed.
Stupidity like this got you in your situation - if it's even real, I smell a troll or con.
Only fans?
Surely this is a troll post or a scam!
Mortgage on a pension? Shouldn't your super lump sum have paid off most of the mortgage if not all of it already? If you have paid the mortgage with everything that you have worked for the mortgage would have been paid off years ago long before your retirement. The sum just doesn't add up here.
It's probably an investment property.
Yea it is. Report to mods
This is what a hodl mentality looks like.
Rba need to kick up a notch and stop pussyfooting around.
Interest rates, to the moon :rocket_ship:
Seems quitting your job has given you more anxiety and depression, so I'm not sure how going on the pension would help your mental health. If you seriously can't work you need to sell your house and move rural where you can afford rent on the pension. You can't afford to own a house in a suburb like Capalaba on the pension. It wasn't interest rates that made living unaffordable, it's your reduction of income. I found your address from the white pages and it's worth 650-700k, depending on your equity in the property you should have enough live comfortably rural but you won't be able to buy again on the pension with your history.
It depends on how severe the anxiety and depression were. Those diagnoses have been diluted to a point where they basically just reflect the general human condition, I've read that over 50% of screening tools yield false positives. It seems that awareness didn't help those suffering, it made people more flippant toward it.
OP might have been in a really bad place, where quitting was an attempt to swiftly remove a variable that could have let to a worse outcome.
I just don't know how OP was able to pay the mortgage with their pension even before the rate hikes.
The best bet would be for OP to find different, less emotionally taxing work, even if it's low paid. They'd already be used to scrimping by, so it wouldn't be a massive adjustment.
Talk to your bank for interest-only repayment till you can catch up with the loan arrears.