Wanda Rowan from Personalised Mortgages talks coronavirus relief for Australian homeowners and businesses
Times are tough for the Australian economy right now, as they are for the rest of the world. Businesses are either forced to close their doors, or drastically reduce the amount of social contact between their employees. Either way, maintaining the same level of cash flow will be a struggle for many households and business owners.
Many are wondering what the banks will be doing as a way of supporting their loyal customers.
We caught up with Sydney mortgage broker, Wanda Rowan from Personalised Mortgages and asked for her professional opinion on what’s happening in Australia right now in regard to mortgages.
Wanda says it’s essential to manage the current situation carefully, while also looking to the future.
“We all know that this current situation will have an ending at some stage. It’s just a matter of when not if.”
Fortunately, says Wanda, banks are not blind to the plights of their mortgage customers and are providing options that promise some relief in managing their financial commitments.
All the big four banks have announced that their customers will be able to pause their mortgages.
Commonwealth Bank customers
Customers of the Commonwealth Bank will be able to defer their repayments for a maximum of six months. However, the interest will be capitalised, and interest and charges will accrue on your outstanding balance. At the end of the support period, your loan balance will be recalculated, and the term of the loan adjusted to keep repayments at the same level as they have been previously.
Westpac Bank customers
Westpac is giving its customers the option to defer payments for up to three months. After three months, another extension may be possible providing it passes a review. The choice is available for people who have lost their job or income stream because of the pandemic. As with the Commonwealth Bank, interest will be capitalised, but it will increase your loan repayments as the loan term will remain the same.
NAB Bank customers
NAB is offering a six-month deferral option, with a three-month checkpoint with the bank. Only customers affected by the coronavirus are eligible, but it’s available for owner-occupiers, investors, and principal and interest or interest-only loan repayment schedules. NAB will still provide the option for redraws while the repayment pause is in effect.
ANZ Bank customers
Customers who qualify may be able to defer repayments for up to six months. Interest will be capitalised, and the bank will check up on your situation after three months.
More advice for struggling homeowners and business owners
Wanda implores bank customers to be proactive in protecting themselves.
“If you have been putting off matters that up until now may not have presented as being important, perhaps now is the time to ensure you review your home and/or business loans.”
Wanda isn’t using fear tactics but is concerned that people might not have enough protection to provide for their families should the worst happen.
Wanda has more to say about being proactive in managing your situation.
“If you feel that you may be about to experience financial distress because of job security then now is the time to talk to your mortgage broker to find out your options so you can avoid defaulting on your loan commitments.”
“All lenders have a “hardship” facility in times like these, and Australians should never be afraid to use them.”
About Wanda Rowan from Personalised Mortgages
In the finance industry for over 10 years, and servicing many local conveyancers, accountants and property professionals as an instrumental referral partner, Wanda Rowan is a great local choice.
With changing lending conditions and more Australians under financial stress than ever before, we love that Wanda is all about helping individuals and families access the right financial solutions.
Big on ethics, always ready to give you the “no-bull” honest answers, and offering a FREE and easy mobile service straight to your door.
Click here to see Wanda’s profile.
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