It’s Raining

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;

1. 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.
2. 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.
3. Request a switch to Interest Only for 3 months and then another 3 months if required.
4. 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.