If you’ve saved for a rainy day… It’s raining.
These are the guidelines you should follow for your home loan or your investment loan – if you find yourself in difficulty.
Depending on the level of difficulty you face, these are the steps you should follow… in order;
- If you have any available redraw in your home loan – take it out and put it in an account – “self-isolate it” – use it to pay the loan over the next 6 months. Effectively this payment is then removed from your budget. This is the rainy day you were saving for.
- Find out the minimum repayment on your loan and reduce your payments accordingly. Rates have fallen over several years and most people are still paying at the previous higher rate.
- Request a switch to Interest Only for 3 months and then another 3 months if required.
- Request a deferral of your loan payments for 3 months and then another 3 months if required.
I can help you with Items 1 and 2
Items 3 and 4 are being dealt with by banks’ hardship departments (they have sweet names – like “Assist” and “Care” – but make no mistake they are the hardship departments).
Your loan still needs to be paid back within the same term once items 3 and 4 are over – meaning a slightly higher payment down the track.
Items 3 and 4 will not be for all loans – you will have to demonstrate hardship – but the criteria will be lowered in these unusual times.
Each bank is slightly different and hence your FIRST contact needs to be with me.
I will
- Help you work out what is best for you.
- Assist with the required steps with your bank.
In times like this – this is why you have me… Just Ask Alan.
Ask Alan – Your online mortgage broker.