Whether experiencing financial hardship through job loss, a reduction in work hours, or business disruption, an increasing number of Australians may be struggling to balance their books as a result of the COVID-19. in many cases are wondering how they will continue to pay the bills.
Difficulty with repayments
According to research conducted by Finder in early 2020, about one in five mortgage borrowers, or about two million Australian households, were struggling to make repayments, despite record low-interest rates. And with the challenging circumstances that have emerged, it is anticipated that these pressures leading to financial hardship will only increase forcing more people to require financial assistance.
Financial relief strategies
In this difficult time lenders have responded by announcing financial relief strategies. In an official Australian Banking Association (ABA) statement, Chief Executive Officer, Anna Bligh, said, “Banks stand ready to support customers and if anyone is in need of assistance, they shouldn’t wait but come forward as soon as possible.”
Different lenders have different assistance options for financial hardship. These may include, waiving fees on early term deposit withdrawals, interest rate freezes on loans, options to defer or restructure home loan repayments, and emergency credit card limit increases.
It is important to remember that mortgage brokers have the knowledge, experience and relationships necessary to assist people experiencing, or expecting to have, trouble paying their home loans as a result of changing circumstances.
The expertise of brokers is of critical support
We can help customers navigate the complex home lending market – and our intimate understanding of personal circumstances – means we are uniquely positioned to provide critical support for customers when discussing financial hardship and available options with lenders. If you are concerned about servicing your loan, reach out to us.
As a local family-owned business, our team takes the time to listen, answer your questions and make getting your home, car or equipment loan as easy as possible. The first step in making your dreams a reality is a chat and that starts by requesting a free consultation with one of our friendly team.