With all the hysteria around COVID19 I thought I would post around the importance of most probably your biggest asset, your home. In a time of significant uncertainty, like we may be facing in the very near future, it’s extremely important to prepare for the worst. If governments are forced to lockdown our state how will you cope? Will you have a job? Will you be able to make your home loan repayments on time?
Over the years I have found banks to look after clients that are proactive in times of hardship and need, do not crawl under your bed and hide, be upfront and honest.
In saying this what if you were even more proactive and looked at your home loan now? Do you know you could reduce your minimum repayment by paying interest only? What if you did this for 12 months to assist with your cashflow? Should this blow over in 6 months we could always switch it back to principal and interest repayments which is very easy.
Should you not even need the support after 12 months you should have significant savings (no one is going to Bali in the near future, we may not even be able to leave the state) we can always reduce your loan by that amount you have saved so it hasn’t impacted your loan term accordingly.
It is important to sit down with your broker/banker to have this conversation upfront and ongoing. Rates are at an all time low and potentially reducing further, this is happening for a reason! The government knows there is going to be a lot of the working population that will face severe hardship in the coming months. There is word that 500,000 people Australia wide could lose their jobs, this is significant!
Are you also aware that some banks are paying a rebate of up to $4,000 to move to them? This would cover the average home loan for 2 months.
I suggest acting NOW, for a free review please contact myself NOW, do not wait!
If you are concerned about meeting face to face we are able to Skype/FaceTime. Should you wish to proceed with a loan application you will still need to be formally ID which can be done either face to face, at a post office or by a service that will come to you.
Director & Finance Manager