PHOTO: 123RF.COM Mortgage repayment holidays can end up more expensive than you expect.
There’s a message for anyone considering taking a mortgage repayment holiday: Take care. It could lead to more pain in future.
The country’s banks have agreed to a mortgage holiday scheme, in which customers who have experienced an income drop due to Covid-19 can stop paying their home loans for six months.
That gives some cash flow relief in the short-term.
But borrowers’ mortgages will be bigger at the end of the holiday than they were when it began because interest still accrues.
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