During these times of uncertainty, we understand there could be challenging periods ahead due to COVID-19 and want to reassure you that we are here to help.
It’s important to know if you are facing difficulties with making repayments on your home loan, then you can seek relief on the grounds of financial hardship directly with your lender.
A few things you need to know about taking a holiday from your repayments:
- If you really need it, go for it – click here for the numbers to call.
- However, over three-quarters of Australian home loan customers are ahead in their repayments by nearly 2 years. (Banks also know how much you are actually spending on most things, including toilet paper, so watch out!)
- So this means if you need to and you are in this position, you can REDRAW the current amount you have overpaid, ask the bank to reduce your repayment to the cheapest amount out there and then hold on! Why do this instead of taking the holiday? Because adding interest on top of interest is never the best solution and you will pay more for that exercise in the long run.
- We have been advised that APRA (The Australian Prudential Regulation Authority – who look after Banks) has indicated there will not be a penalty on your Credit Report if you have to use the repayment holiday option so this means when this is over, you can refinance if necessary, without too much worry about how your credit file looks.
- But how about calling me or making an appointment if you want any help at all – we are here for YOU!!! And also tell family and friends if they need to discuss these issues with someone, we can help – even if they are NOT an existing client of mine.
- Request a lower interest rate
- Switch to interest-only repayments
- Extend the loan term to reduce the repayments
- Ask for fees and charges to be waived
- Consolidate debts to make repayments more manageable
Not all banks and lenders will have a COVID-19 specific relief package prepared. However, they still have standard policies in place to help those who are facing financial hardship for any reason.
While financial hardship requests need to be made directly to the lender by the client, we can help you prepare for the conversation or suggest alternative solutions based on your individual circumstances.
Importantly, if you are facing financial hardship, please act immediately and do not delay. The CEO of the Australian Banking Association, Anna Bligh said, “Banks stand ready to support customers, and if anyone is in need of assistance, they shouldn’t wait but come forward as soon as possible.”
We are ready to assist, so please don’t hesitate to get in touch today.
Take care…..
With thanks,
