There are various support packages out there for homeowners and small businesses designed to help you in these uncertain times. In fact, the Australian Banking Association CEO Anna Bligh had announced a small business relief packages from Australia’s banks. This Assistance Package will apply to more than $100bn of existing small business loans. Depending on the customer take-up, it could put as much as $8 billion back into the pockets of small businesses.
Economists have backed plans by the big banks to let homeowners impacted by the coronavirus crisis defer mortgage repayments for up to six months. Affected homeowners could pause repayments for up to six months on A$100bn in loans for small businesses, pending a three-month review. This is part of new support packages for homeowners and businesses.
Furthermore, relief packages by the banks for extra support include up to a three-month deferral of mortgage repayments under existing financial hardship policies. In addition to extending repayment holidays, the banks announced new fixed-home loan and term deposit rates, among other measures. Individuals who lost their jobs can benefit from these measures to ease their payments and deferring their deadlines until this crisis is over.
For more information about additional support by the government: https://moneysmart.gov.au/covid-19
How can relief packages help you with your mortgage?
Indeed, all lenders have hardship teams that are ready to help customers in tough times. So, don’t hesitate to get in touch with your lender to discuss your options. You may be able to change the terms of your loan, or temporarily pause or reduce your repayments. This is called a hardship variation.
To apply for a hardship variation, these are some steps you may have to undertake:
- Contact your lender’s ‘hardship officer’
- Give details of your loan (account name and number, and the amount you pay each fortnight or month).
- Tell them your needs (ie: changing your loan repayments because you are experiencing hardship)
- Explain your financial situation and negotiate.
For more information: https://moneysmart.gov.au/home-loans/problems-paying-your-mortgage
Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements.
Mitchelle Katsande is Head of Marketing and Communications at Benevolence Financial Group. Mitchelle currently holds a degree in International Business and Finance and is currently supported by Macquarie University Incubator and City of Parramatta Council.