26 Mar Are you financially affected by COVID-19?
Over the past week we have been getting many calls from clients, real estate agents and friends asking what people should do if they lose their job and would like to put a hold on their mortgage repayments. Here we have outlined what you can do and where to go to gather further information.
What to do if you are concerned about not meeting your mortgage commitments
- If you have lost your job or unable to work due to the Coronavirus, you can register for financial support with Centrelink:
- Always communicate with the bank if you are going to pay late and ideally, avoid this at ALL costs as it affects your credit history.
- If you anticipate this could be a long-term situation, apply for Financial Hardship directly with your lender. All lenders will have provisions in place to hold repayments – in some cases for up to 12 months. Please note that you WILL still end up paying the repayments in full, just at a later date.
TIP: If you need to defer your repayments, it is important to specifically tell your bank you are “without an income due to the Coronavirus or COVID-19 situation”.
Where to gain further information
- Refer to our recent blog post for a summary of relief packages offered by the top banks: https://theloanroom.com.au/emergency-coronavirus-relief-packages/
- The AUS Banking website provides some great information, especially for small business owners: https://www.ausbanking.org.au/campaigns/financial-hardship/. They also provide a link to individual lender websites for further details.
- Download the Financial Difficulty Fact Sheet at: https://www.ausbanking.org.au/wp-content/uploads/2020/02/ABA-Financial-Difficulty-Fact-Sheet-A4.pdf
At The Loan Room we are happy to assist in any of these matters for you even if you are not an existing client of ours. So if you’re looking for specific details for a particular bank or loan type please contact me and I will forward details through or at least point you in the right direction.
This is a tough time for everyone so any pressure we can remove for you, we would be happy to do so. Please email email@example.com
If possible, we recommend t0 avoid putting a freeze on your mortgage repayments as it will just mean that you owe more money to the banks on a later date.
If you have savings then use this to cover payments and if you do not have savings then maybe speak to your bank about access some of your equity so that you can cover living expenses for 6 to 12 months should you require it. Get in touch if this is something you’re interested in and we can provide further advice specific to your circumstances.
Take care, stay healthy and keep positive.