Your questions answered

If you are experiencing business hardship or a reduction or loss of income, then you may be eligible to access a range of temporary measures from lenders to assist you through this challenging time. You can either talk directly to your lender, or you can contact us at Collins Home Loans.

Many of the banks and smaller lenders have been quick to enact and promote a range of specific hardship measures to help borrowers during the coronavirus pandemic. In an official Australian Banking Association (ABA) statement, CEO 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”.

Under what is commonly known as a 'hardship clause',  lenders will let you pause or defer your mortgage repayments for between three and six months. Some lenders may even extend repayment pauses beyond six months.

Each lender will have its own set of criteria, but in general, if you have lost your job or income you will qualify. It will be important to have a letter of termination from your employer or evidence of cancelled invoices, bookings, jobs etc.

Different lenders will have different assistance options. Here is a quick outline of the types of options you may have available to you:-

• Pause mortgage repayments - a temporary break from your normal repayments for between 3-6 months. You will need to either extend the loan period or increase your repayments after the pause period.
• Interest-only repayments - some lenders may adjust your payments to interest-only for a set period.
•  Accessing your redraw - If you have a redraw facility, your lender may allow you to utilise this facility to convert it to extra repayments. 
• Restructuring your loan
• Waiving fees 

As a mortgage broker with over 26 years of experience, we have the knowledge, experience and relationships necessary to assist you during this difficult time. If you have any questions or concerns about your existing loan, need further guidance on hardship assistance, or have other questions about your loan arrangements, please contact us to discuss your specific scenario.