Increasing numbers of mortgage holders are using their superannuation as a source to prevent losing their homes.
Since last July the Herald Sun asserts that more than 5000 people have requested permission to dip into their superannuation to avoid losing their homes. This could amount to more than $75 million.
It is becoming increasingly more difficult to retain home ownership as living costs rise and housing affordability drops. It has been reported that more people are turning to Welfare centres for assistance.
Fiona Guthrie executive director of the Australian Financial Counselling and Credit Reform Association stated that this was a carryover from previous lax credit control.
Under federal law homeowners can apply to APRA to obtain access to their super funds provided they can prove that a lender is about to foreclose on the family home.
When finances are low investigate what options are available to you as there are several available.
You need to be aware that this is only a temporary solution and that it will cost more in the long run.
Revise your Budget.
You might need to consider selling your home or renting it out, and you could move to cheaper accommodation.
Compare Home Loans.
Consider changing your mortgage to another lender as there are some very attractive loans available at highly competitive terms and conditions. Check our "Compare Home Loans" section.
Another option is to approach your current lender to negotiate a better deal.