If you are finding it tough to meet your current financial obligations or you are just interested in reviewing your current home loan, then you are not alone. Mortgage brokers stand ready and able to assist with your options during this difficult time.
The latest GDP figures showed that the Australian economy shrunk 7% in the three months to June. This is a bigger fall compared to the 0.3% decline in March. These two consecutive quarterly falls mean Australia has officially entered recession, its first in 29 years.
However, the Australian housing market continue to remain resilient to the economic effects of COVID-19 with prices nationally dipping just 0.4% in August. The extension of government stimulus, together with low mortgage rates and freeze in mortgage repayments have kept the market afloat.
With the bushfires early this year and the COVID-19 pandemic, thousands of Australians are out of work. Many others have had their hours reduced or have been temporarily stood down.
In this period of uncertainty, at the very least many will be taking a closer look at their finances to make sure their current loan arrangements are right for them. Mortgage and finance brokers have the experience and knowledge to assist in a variety of situations and are simply an internet search or phone call away. Mortgage brokers are in regular contact with the banks and make it their business to understand the different options lenders currently offer.
And while the options can seem straight forward, it is easy to miss the details and differences that can add up, particularly over a 30-year term. For example, a number of banks are offering to temporarily freeze mortgage repayments for three or six months. While this may seem like a good option, it is important to fully understand the implications. This could mean that the total debt will increase. Of course, depending on an individual’s circumstances, there may be a number of available alternatives that may reduce repayments while not increasing your interest bill as much in the long term.
Refinancing too may be on the minds of many as a result of the Reserve Bank cutting rates and banks passing them on, to varying degrees, as well as access to a range of competitive fixed interest rate options on the market. A discussion with your local mortgage broker may be just the ticket.
While a simplistic view of what constitutes a great mortgage is the one with the lowest interest rate, mortgage brokers know that what suits one person might not necessarily suit another. For instance, fixed interest rates can offer piece of mind as interest rates increase, but they can be the cause of anxiety if rates fall or if unforeseen circumstances require a change.
No matter what your circumstances are, mortgage brokers can actively assist you in navigating your current situation. So, if you’ve been thinking about reassessing your finances and are not in contact with your broker, do yourself (and your cashflow) a favour and call us now!
Maria Papa is a senior property and finance expert specialising in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au.
Your full financial situation will need to be reviewed prior to acceptance of any offer or product.