When Mortgage Holders Choose To Defer

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When Mortgage Holders Choose To Defer

Please read only if you have a home mortgage or business loan.

Choosing not to pay your loan for 3 to 6 months is a big decision, and we do not recommend it, as your interest will continue to accumulate.

However, for some of us, this may be our best or even our only option to get through this.
There is nothing to be ashamed of when you can no longer trade, or no longer have an income.
None of this is your fault.  Protect your assets and do what you have to do.

APRA has clarified it’s position to allow the 6 month payment deferrals for home loan borrowers and small business loans.  Link at bottom of page.

The deferral period will be considered a ‘repayment holiday‘… not ‘payment in arrears’.  The loan will also not be considered as restructured.  This is a very important distinction as it should not require catch up payments later.  It would literally just be no repayments, then start again in 6 months time.

For those who are concerned, not sleeping well at night, be pro-active and begin the conversation with your bank today.  Perhaps through online chat.

Also consider talking to a mortgage broker, to see if you can refinance at a better rate, and perhaps take advantage of this ‘repayment holiday’.

We believe your loyalty should be rewarded and that relationships matter, so ask your current financier to match before you go through the whole refinance process.

To quote Janine Allis (founder of Boost Juice) ‘Always ask for cash when you don’t need it‘.

If you leave it too late, the bank may have less ability to help you.

Check your rate versus some of these.   Consider the value of flexibility, interest offset accounts, honey moon periods, and other hidden items before changing.   Make sure you get advice from your bank about all these matters, and we can assist anytime to help ensure it is the right loan for you.

https://www.canstar.com.au/home-loans/

https://www.ratecity.com.au/home-loans/best-mortgage

https://www.finder.com.au/home-loans/best-home-loans?When mortgage holders choose to defer – article

Please read only if you have a home mortgage or business loan.

Choosing not to pay your loan for 3 to 6 months is a big decision, and we do not recommend it, as your interest will continue to accumulate.

However, for some of us, this may be our best or even our only option to get through this.
There is nothing to be ashamed of when you can no longer trade, or no longer have an income.
None of this is your fault.  Protect your assets and do what you have to do.

APRA has clarified it’s position to allow the 6 month payment deferrals for home loan borrowers and small business loans.  Link at bottom of page.

The deferral period will be considered a ‘repayment holiday‘… not ‘payment in arrears’.  The loan will also not be considered as restructured.  This is a very important distinction as it should not require catch up payments later.  It would literally just be no repayments, then start again in 6 months time.

For those who are concerned, not sleeping well at night, be pro-active and begin the conversation with your bank today.  Perhaps through online chat.

Also consider talking to a mortgage broker, to see if you can refinance at a better rate, and perhaps take advantage of this ‘repayment holiday’.

We believe your loyalty should be rewarded and that relationships matter, so ask your current financier to match before you go through the whole refinance process.

To quote Janine Allis (founder of Boost Juice) ‘Always ask for cash when you don’t need it‘.

If you leave it too late, the bank may have less ability to help you.

Check your rate versus some of these.   Consider the value of flexibility, interest offset accounts, honey moon periods, and other hidden items before changing.   Make sure you get advice from your bank about all these matters, and we can assist anytime to help ensure it is the right loan for you.

https://www.canstar.com.au/home-loans/

https://www.ratecity.com.au/home-loans/best-mortgage

https://www.finder.com.au/home-loans/best-home-loans?When mortgage holders choose to defer – article

When mortgage holders choose to defer – article

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