If you are finding it tough to meet your current financial obligations or you are just interested in reviewing your current home loan, then you are not alone. Our brokers remain ready and able to assist with your options during this difficult time.
Turbulent does not even begin to describe 2020 so far. As a result of COVID-19 and not forgetting the bushfires, thousands of Australians are out of work, with Treasury predicting that the jobless rate will double in the June quarter from 5.1 per cent to 10 per cent. Many others have had their hours reduced or have been temporarily stood down.
This is scary, but it’s not a reason to bury your head in the sand.
If you ever experience financial hardship – for example, due to the impacts of COVID-19 – you can apply to your lender to put your home loan repayments on hold for up to six months.
In this period of uncertainty, at the very least everyone should be taking a closer look at their finances to make sure their current loan arrangements are right for them. At Credo, our brokers have the experience and knowledge to assist in a variety of situations and are simply a phone call away. We remain in regular contact with our variety of banks and lends, and make it out business to understand the different options each currently offer.
And while the options can seem straight forward, it is easy to miss the details and differences that can add up, particularly over a 30-year term. For example, a number of banks are offering to temporarily freeze mortgage repayments for three or six months. While this may seem like a good option, it is important to fully understand the implications. This could mean that the total debt will increase. Of course, depending on an individual’s circumstances, there may be a number of available alternatives that may reduce repayments while not increasing your interest bill as much in the long term.
Refinancing too may be on the minds of many as a result of the Reserve Bank cutting rates and banks passing them on, to varying degrees, as well as access to a range of competitive fixed interest rate options on the market. A discussion with one of our brokers will help you understand and uncover this.
While a simplistic view of what constitutes a great mortgage is the one with the lowest interest rate, we know that what suits one person might not necessarily suit another. For instance, fixed interest rates can offer piece of mind as interest rates increase, but they can be the cause of anxiety if rates fall or if unforeseen circumstances require a change.
No matter what your circumstances are, each is in some way unique. Our brokers will take time to understand and then can actively assist you in navigating your situation. So, if you’ve been sitting on the bench thinking about reassessing your finances, do yourself (and your cashflow) a favour and call us now or click here to have one of our team call you today.
Published by MFAA