‘Mortgage Holiday’ To Come To An End – The Next Move You Need To Make

‘Mortgage Holiday’ To Come To An End – The Next Move You Need To Make

At some point financial relief and what we know as a ‘mortgage holiday’ will come to an end, however, you do have options available to you to help you restructure your mortgage and set yourself up with a mortgage free holiday for the life of your mortgage.

The Australian housing market and economy has taken a massive hit, one, which we have not experienced since the Great Depression.

Since the outbreak of the Corona Virus the Australian economy and housing market has struggled, and now with a second wave hitting we can expect the economy to suffer for two to three years before we start to see any sort of recuperation, and things get back to where we were pre-Covid-19, if they do ever get back to where they were!

Yes the Australian Government has offered some financial relief, however, the housing market especially and people who have mortgage commitments are under serious stress.

Australian housing values have seen a major downward slide, 0.7 percent drop nationally, as more people are forced to put their homes on the market due to financial hardship.

We are only at the beginning with CoreLogic’s head of research Australia, Eliza Owen, stating that most analysts are expecting price declines to continue, with a peak-to-trough fall nationally of around 10 percent.

“There are definitely some headwinds and risks that lie ahead for the market. These include a sustained rate of high unemployment, with the cash rate unlikely to go any lower, it really does come back to labour market fundamentals to improve purchasing capacity for housing.”

Owens went on the say;

“The other major risk is the tapering off of fiscal stimulus and how long banks can sustain easier conditions for people trying to service mortgages amid these job and income losses.”

Currently there are about 800,000 Australians who are on a ‘mortgage holiday’. 

The Australian Banking Association chief executive Anna Bligh said people had now deferred over $260 billion worth of loans since repayment holidays were rolled out back in March.

“This next phase of bank support will avoid a ‘cliff’ for customers in September and give them the breathing space they need to work with their bank and get back on their feet financially” said Ms Bligh.

“Those who are able to repay their loans will resume doing so, which is in the best interests of those customers and allows support to be directed to those who need it. Encouragingly, many customers have already chosen to resume making repayments”

At some point financial relief and what we know as a ‘mortgage holiday’ will come to an end, however, you do have options available to you to help you restructure your mortgage and set yourself up with a mortgage free holiday for the life of your mortgage.

Re-financing is an exciting time if you are using the extra liquidity you make as an offset to pay down what we call ‘Good Debts’ such as the mortgage. Extra to this, you may also be eligible for further tax deductions and government rebates.

Contact us today to book in for a FREE, no obligation, over the phone Financial Discovery call with a trusted Financial Advisor.

Leave A Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.