Deferring Loan Repayments during the Covid-19 Pandemic
It’s been a busy couple of weeks taking calls from clients wanting to discuss their options for deferring their home loan repayments while we in this pandemic.
If you haven’t been in contact with your Bank or Lender to discuss your options for deferring your Home or Investment Loan, here are the 5 things you need to have to done before you contact them.
Have your loan account details ready
Look at your Phone Banking or Internet Banking. Have BSB AND account number to hand. If you don’t use either of these, grab your most recent Loan Statement, these details should be on the first page.
Understand your income
Through this unknown time, knowing what your income is going to be may be difficult. If you are still working but feel that your hours may be cut or you will lose your job, anticipate what your income will be based on that scenario.
Know what your monthly costs are
It’s time to know your numbers! If you’re asking for your payments to be deferred, you need to have done your Budget. This is important as the Bank will want to know what other loans or Credit Cards you have and what those Monthly repayments are. You’ll also need to know your Monthly Fixed costs, ie, Electricity, Rates, Grocery costs.
Think about your options realistically
Just because you can defer your mortgage repayments, doesn’t mean you should. If you have lost your job, then this may be a necessity. However, if you are still working, then you could consider other options.
Other options that may be available to you:
- Request a lower interest rate
- Switch to interest only repayments
- Request a repayment holiday for 3-6 months (interest is still incurred but repayments are stopped for a period of time).
- Extend the loan term to reduce the payments
- Making partial loan repayments.
- Ask for fees and charges to be waived
- Consolidate debts to make repayments more manageable.
Lastly…Be prepared to wait
Banks and Lenders are experiencing VERY high volumes of calls now. Majority of Banks have information on the Covid-19 relief package on the Home Page of their Internet Banking page. There is a link which allows you to put your details in and request a call back. Please be patient, the Banks are doing their best during this time.
If you’re having trouble contacting you Bank, please feel free to contact me on 0458 729 861 anytime. I am here to help.