COVID-19

I know these are crazy times and not something any of us thought that we’d be doing in 2020, but please, don’t struggle alone, lenders are listening and will help.

Below is a list of places you can go to for different lenders to point you in the right direction to help in this time of need.

However, before contacting them I would just like to point out a couple of things:

When you take a ‘repayment holiday’ or ‘defer payments’ or whatever terminology they use, they could capitalise the missed payments on top of your current loan at the end of the ‘holiday’ period. So you actually have more added at the end, than what you would have paid because the interest on the unpaid interest is added to your loan. (*Edit I have heard different lenders advising they won’t pass on the interest on interest – or they will refund it, so just ask this question when speaking with them).

(e.g. If you owe $300k and you stop paying your $1500 per month for 6 months, then at the end they will add that $1500 x 6 to your loan, but also because your loan didn’t go down by $1500 each month, you are actually accruing interest daily on a higher amount than you would have so all this interest has to go on top also).

So please consider this when making your decision (of course if it’s the difference between losing everything and holding on to it, then you do what you deem necessary, maybe even run it by your accountant to get their input.)

Another option would be to ask your lender if you can change to ‘interest only’ payments (lenders don’t always like to do this for an owner-occupied property but we’re not in ordinary times).  This option will see your repayments being lower, your loan balance won’t decrease but it won’t increase like it would with the above option.  However, when you go back to Principal & Interest you will see that your repayments will be greater than they were previously as you will have less time to pay off that amount.

(e.g. Let’s say you had 18 years 6 months left on your loan and you owe $300k, if you pay interest-only for 6 months, then you have to pay $300k over 18 years, which effectively increases your payments. I hope that makes sense). Again, do what you need, just know the effects of your decision and if needed speak to your advisor.

Finally, you could leave your loan on Principal & Interest but extend it back out over 30 years.

So maybe you took a $300k loan over 30 years and you’re paying around $1430 p.mth and you’ve paid the loan for 5 years. The loan is now sitting at around $270k, if you take it back to over 30 years then your payments could be taken down to around $1290  (please note I’m using 4% interest rate and assuming it hasn’t changed over this 5 years – this is unlikely – just for ease of explanation).  The other thing you could do is add your other loans into this amount, so maybe you’ve got a $20k personal loan and a $10k credit card that is maxed, so you could add those in, take it over the 30 years and you’re paying the $1430 p.mth for everything.

The thing to remember here is your mortgage will take another 5 years, so I would definitely only consider this if you are not going to reach retirement age in the next 30 years.

Also if you’re considering consolidating the personal loan and credit card, remember although it’s saving you money in repayments in the short-term, you are effectively paying off these 2 smaller loans over 30 years!!  So really, it’s costing you money in the long term but again, if it’s going to save you losing everything then do what you must but I urge you to speak to your adviser to get the best advice for you!

No matter what you decide to do, make sure you clarify with the lender EXACTLY what affect it will have going forward, are they increasing the amount of the loan or will they increase the time and preferably get some advice from an expert.

Ok, first stop  – check out the Governments Money website:

https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage

(in fact, they have a whole section on COVID-19 https://moneysmart.gov.au/covid-19)

 

Then the lenders:

AMP:  https://www.amp.com.au/support/COVID-19

ANZ:  https://www.anz.com.au/support/covid-19/

Australian Military Bank:  https://www.australianmilitarybank.com.au/member-advice-covid-19

Auswide:  https://www.auswidebank.com.au/campaign/important-information/

Bank of China:  https://www.bankofchina.com/au/bocinfo/bi1/202003/t20200324_17668736.html

Bank of Queensland:  https://www.boq.com.au/help-and-support/assistance

Bankwest:  https://www.bankwest.com.au/help/coronavirus-support

Better Choice:  https://www.betterchoice.com.au/covid-19-customer-hardship/

Bluestone:  https://bluestone.com.au/borrower/covid-19/

Citibank:  https://www1.citibank.com.au/COVID-19-Update

Commonwealth Bank:  https://www.commbank.com.au/latest/coronavirus.html?ei=coronavirus

Connective Home Loans:  https://www.connectivehomeloans.com.au/contact-us/

Firefighters Mutual Bank:  https://www.fmbank.com.au/coronavirus?icn=corona2020&icd=hp-banner1

Firstmac:   call the Hardship Consultants directly on 13 12 20.

Gateway Bank:  https://www.gatewaybank.com.au/Coronavirus

Health Professionals Bank:  https://www.hpbank.com.au/coronavirus

Heritage Bank:  https://www.heritage.com.au/about/news/2020/heritage-responds-to-covid19-situation

ING:  https://www.ing.com.au/help-and-support/coronavirus-covid-19.html?pid=vis:hph1:def:covid19

Latitude Financial:  https://www.latitudefinancial.com.au/covid-19/

LaTrobe:  contact – 1800 620 639 or email hardshipassist@latrobefinancial.com.au

Macquarie Bank:  https://www.macquarie.com/au/personal/forms/payment-pause

ME Bank:  https://www.mebank.com.au/support/coronavirus-information/

MyState:  https://www.mystate.com.au/about-us/covid-19

NAB:  https://www.nab.com.au/personal/customer-support/covid19-help?own_cid=MH20012

Newcastle Permanent:  https://www.newcastlepermanent.com.au/supporting-you

OnDeck:  https://www.ondeck.com.au/covid-19/

Paramount Mortgages:  Call Sean White 0418 915141

Pepper:  https://www.pepper.com.au/coronavirus

Prospa:  https://www.prospa.com/covid-19-support

Resimac:  https://www.resimac.com.au/coronavirus-support

St. George:  https://www.stgeorge.com.au/business/small-business-relief  and

https://www.stgeorge.com.au/about/sustainability-and-community/disaster-relief/covid-19/home-loans

Suncorp Bank:  https://www.suncorp.com.au/banking/covid19-information.html

Teachers Mutual Bank:  https://www.tmbank.com.au/coronavirus

Unibank:  https://www.unibank.com.au/coronavirus?icn=corona2020&icd=hp-banner1

Virgin Money:  https://virginmoney.com.au/help/support-and-assistance

Westpac:  https://www.westpac.com.au/help/disaster-relief/coronavirus/home-loans/

and   https://www.westpac.com.au/business-banking/small-business-relief/

Last, but by no means least, if you need additional support please contact one of the following:

National Coronavirus Helpline:  https://www.health.gov.au/contacts/national-coronavirus-helpline

Kids Helpline:  https://kidshelpline.com.au/coronavirus

Lifeline:  https://www.lifeline.org.au/get-help/topics/mental-health-and-wellbeing-during-the-coronavirus-covid-19-outbreak

Beyond Blue:  https://www.beyondblue.org.au/the-facts/looking-after-your-mental-health-during-the-coronavirus-outbreak

Red Cross:  https://www.redcross.org.au/coronavirus

Please stay well and look after yourselves and if anyone would like help with a scenario or any figures then feel free to send an email to admin@bri-fi.com.au and we will get back to you.