Has your home loan deferral almost expired?
If you were one of the many people who opted to defer your home loan at the beginning of the pandemic, you’re not alone, as hundreds of thousands of Australians took advantage of the home loan deferral option offered by banks.
Now here we are six months on, and for many, the uncertainty around their economic situation has become clearer. If your loan is due to come off your deferral plan in the next month or two, what are the next steps for you?
The latest stats about home loan deferrals in Australia reveal that almost half a million borrowers are approaching the expiry of their deferral arrangements, according to the Australian Banking Association (ABA). Around 450,000 Australians are currently in a deferral arrangement and their loans are set to be reviewed over the coming weeks:
If your loan deferral is due to end and you are in a financial position to resume your mortgage repayments, then you may not have to do anything at this stage. Most banks and lenders have a process in place and they will be in contact with you to let you know when your repayments resume, how much they will be and what your outstanding balance is.
However, if you wish to take a more proactive stance, you may be able to take some action towards making some serious headway on your home loan.
Although the pandemic has created many challenges, one of the upsides for mortgage holders has been the reduction in interest rates. Mortgages are now the cheapest they’ve ever been – so if you want to ease your cashflow, reduce your repayments and create some peace of mind around your mortgage going forward, now could be the ideal time to refinance.
The ABA has already confirmed that anyone who applied for a mortgage deferral as a result of the pandemic will not have their credit rating impacted as a result.
So, if your financial situation is in otherwise good shape, we may be able to assist you in restructuring your mortgage so you can access a cheaper interest rate or a better deal. This could include restructuring your loan over a shorter or longer term (depending on your goals) to help you either pay your loan off sooner or assist with cashflow.
Or if you’re chasing some repayment certainty, we could help you lock in a fixed rate that gives you certainty for the next one to three tears. There are some lenders who are offering a 1.99% 3 year fixed rate, which is the cheapest deal we’ve ever seen!
If you’re interested in seeing what options are available to you and how you could improve your financial situation, contact our friendly team today for an obligation-free chat. Remember, our services as a mortgage broker are completely free so you have nothing to lose – and a huge potential to gain.
Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.