Currently there is a hold on Mortgage re-payments due to the financial hardship that Covid-19 has put on many of us.
The Australian Government has just released that they are extending the hold on mortgage re-payments. The new extension will be processed on a case by case basis depending on individual circumstances, with the banks expecting those who are able to resume repayments to start doing so by the end of their six-month deferral in September.
The additional deferral will also have no impact on a customer’s credit report or their credit rating.
The Australian Banking Association chief executive Anna Bligh said over 800,000 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”
Business and mortgage loan customers seeking the further four-month extension will be required to work with their bank to restructure or vary their loan.
These options include extending the length of the loan; converting to interest only payments for a period of time; consolidating debt; or a combination of these and other measures.
“If, during or at the end of any deferral, customers continue to be severely financially impacted and are unable to make repayments, they will be assisted through their bank’s hardship process to determine the best long-term solution for their individual circumstances,” said Ms Bligh.
The second phase of support comes as the Australian Prudential Regulation Authority (APRA) extends regulatory relief to the banks to encourage them to further support their customers.
Treasurer Josh Frydenberg welcomed the announcement and thanked the banks for agreeing to extend support after concerns were raised about a September economic cliff due to the legislated end of the JobKeeper payments coinciding with the end of loan deferrals.
“The Government acknowledges and thanks the Banks, APRA and ASIC for their collective efforts in support of Australians who financing financial hardship during this difficult time,” said Mr Frydenberg.
“It is important that customers that can afford to make repayments continue to do so. Borrowers that are facing considerable financial difficulty as a result of this pandemic, should talk to their banks and work with them to find a more sustainable approach.”
Get On Top Of Your Mortgage Re-Payments
Covid-19 has affected Australian’s personally and the Australian economy on a scale which we have not seen since the Great Depression.
Have you personally been financially affected by the current crisis? Are you concerned about your current income?
We have some great news! There are options available to help you, and you may be able to set up a mortgage free holiday for the life of your mortgage.
If you answered YES to any of the questions above, contact us today to book in for a FREE financial discovery call to discuss your mortgage options.
When you choose to have an investment with NGS Crypto, you are paid out daily, this ensures that as a member you have a safe and reliable source of income, which you are able to draw down on at any time.
What you make as an extra income on a daily, weekly, monthly or yearly basis depends on your initial investment amount.
See the graph below for an investment with NGS Crypto of $200,000 USD.
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.
To find out more book in for a FREE, no obligation, over the phone appointment with one of our trusted financial advisors.