If you have a mortgage and your income has been affected by the Covid-19 virus and its impact on the Australian economy, you might have some concerns about your ability to keep up to date with your payments.
It’s obviously a time of change, with many millions of Australians impacted by our major economic shutdown, social distancing and job losses.
At Mortgage Broker Group, we have been monitoring the situation on a daily basis, keeping up with announcements and rule changes from both governments and lenders. We understand that the uncertainty and loss of income will cause enormous stress to many people.
If you are finding it hard to afford mortgage repayments due to Covid-19, please contact us. There are several ways we may be able to help.
Here are just some of the ways we can take some financial pressure off.
Refinance: While changing lenders might not work if your income has been reduced due to Covid-19, we may be able to negotiate a lower interest rate of different conditions to make your home loan easier to manage. If you’ve had your loan for many years, or your income isn’t affected, changing lenders can result in big savings.
Freeze repayments: Many lenders are offering their customers the option of freezing repayments for a period. While this might be just the lifeline you need, you should try to maintain at least some repayments if possible. Historically low interest rates won’t be with us forever, so the more you pay now the better. We can assist you in negotiating with your lender, and ay be able to agree on a reduced monthly repayment or even a period of interest-only payments.
Switching loan type: If the up-and-down nature of variable loans makes you uneasy, you can opt for a fixed-rate loan. The interest you’ll pay will probably be higher than on a variable loan, but at least there’s certainty. There are downsides, including no ability to make extra payments when we all come out the other side of Covid-19.
For borrowers nearing the end of a period of fixed-interest, now might be the time to consider switching to a variable rate, or even investigating a split loan.
We can help
Keep in mind that everyone’s situation is slightly different, so not all of these approached will work for anyone. We are happy to learn about your specific circumstances and – at no cost to you – offer advice about changing some of your loan details to reduce the burden.
Contact Mortgage Broker Group for the latest information about loans, lenders and government support. We’ll all get through Covid-19 together.