, but there are a few things you can do to reduce the angst.

1. Don’t borrow the maximum amount

it is based on multiple factors, most financial institutions determine the maximum amount of loan they will approve. However, it is wise not to go for maximum amounts to avoid stretch.

2. Build up a buffer
Go for a cash reserve in a mortgage offset account as a buffer. This would be helpful to repay the loan if any contingency occurs.

3. Take advantage of mortgage protection insurance
For better protection and cover, think about mortgage protection insurance. Many lenders offer insurance when you take out a home loan that covers the mortgage if you die, become disabled or your employment ends involuntarily.

4. Fix the interest rate
A good way to tackle the interest rate is to fix it. However, it may restrict making additional payments into a fixed-rate loan.
For many, a combination of fixed and variable rates loans works best, as the variable-rate portion allows for additional repayments of the debt.

5. Don’t add fuel to the fire
Many often use credit cards to meet mortgage repayments. However, using debt to service debt is very likely to compound the problem.

Remember, the above tips are general in nature and have not been tailored to your personal circumstances.

For more customised advice, set up a “Free Initial Consultation” with our expert advisers.

Our adviser can help you in budgeting, and projecting cash flows while at the same time determining the level of loan suitable for you.