A large majority of the Australian population is finding it difficult to repay their home or mortgage loans as the Corona Virus is taking its toll. To deal with such hardships, mortgage lenders have restructured the loan repayment and refinancing policies to help such borrowers with mortgage relief and hardship support policies.
In the current situation, majority of the Australian lenders will allow you to pause or defer your mortgage repayments for upto 3 to 6 months, which is also called, mortgage repayment holiday. You can temporarily halt your repayments however; you need to pay the full amount back at a later date, when the situation clears out. In most cases, you might be charged with an interest rate during the deferred period, which too you can payback over the remaining loan period.
Then again your bank may let you expand your credit terms, keeping your reimbursements lower yet asking you to compensate the advance for longer to cover the additional premium.
What will be the condition of the property market and the home and mortgage loan situations?
According to the executive manager of economic research at REA Group, Cameron Kusher, property exchanges and rental seeking have dropped off significantly as of late. However, he recommends that there is a “decent chance for a solid recuperation”. When the current situation brought to us by the COVID-19 is over, low loan costs, modest funding opportunities and lowered demand will improve house sales and the overall market condition.
Kusher says, “at the point when we do begin to come out of this situation, the expense of borrowing will be extremely low, and it will motivate an increasing number of people to have their home redesigned, shift to another property or construct their dream home. It could likewise empower individuals who are leasing to get into property too,”
However, keep note of the fact that numerous banks and private lenders are presently upholding brief loan in grestrictions for the potential purchasers from specific ventures like the travel, tourism, hospitality, retail, sports, entertainment and recreation industries which have been hit hard by the pandemic.
How to benefit from the changes in the financial industry caused by the covid-19 epidemic?
Refinancing your current mortgage
As new loaning rules are being enforced upon by the banks during thisperiod of emergency, it might be hard to secure refinancing if you are unemployed or is employed in the negatively affected industries. However, In any case, if you are in a position where moneylenders will take you on, the present home loan rates are ready for the picking and banks are consistently searching for clients interested in home or mortgage loans.
Getting into the property market during or post Corona Virus
Apart from that, the drop in the interest rates for home loans (generally fixed interest rates) implies that this might be a perfect time to put resources into your first pad–if you have the right amount of deposit stored. While things have gotten increasingly complex – live auctions and inspections have been restricted, and so, plenty of banks have balanced their loaning models as on account of refinancing – there are ways that first-time home purchasers can excel, similar to the extended loan approval period under the First Home Loan Deposit Scheme.
Choosing a suitable financial support that will not cost you down the line
For people who are encountering financial hardships due to sudden unemployment or wage cuts, this may mean applying for government assistance as opposed to applying for a new line of credit or credit card to finance a secure living. For entrepreneurs, this is tied in with evaluating government and bank relief eligibility. There’s the Job Keeper scheme available to keep the organisations sailing and Australians employed by means of a financial support in case of salary cuts; struggling businesses can also avail half or full rent payment waivers or deferrals and, many other fee waivers and credit rebuilding or holidays being provided to organisations by the banks.
How will the mortgage brokers be able to help you during this epidemic?
Majority of the mortgage brokers in Australia are still fully active during this time of epidemic. They will be able to find you a suitable and appropriate loan product and a reliable lender in this situation. A few moneylenders are being very cautious and observing a few industries that have been severely affected by the COVID 19 epidemic.
One of the significant changes to the process of application from lenders because of social disengagement has been the way that home loan agents check personal identification. Before the COVID-19 issues, a broker would be required to have an up close and personal meeting with the client and verify all the proper identification proofs, for instance, visa, drivers permit and Medicare card. However, moneylenders understand that now majority of the clients will not, be able to have a face to face communication and so, have adapted their practices accordingly. Bank of Melbourne, for instance will currently use electronic verification process such as video conference to verify new clients. These new adaptations will demonstrate that ID is no longer an obstruction to a home, personal, car or even mortgage loan application process during the novel Corona Virus epidemic.
If you are having any issue with your mortgage or home repayment or is looking for a way to refinance or borrow personal or car loans during or post covid-19 epidemic, feel free to contact Tassie Mortgage Broker today! We will walk you through the complete process to successfully apply for your home or other loans without any issue.