If you need help, please let lending4u know. We are working with all lenders to provide clients with support. These options differ from lender to lender. If you or your business is affected by COVID-19 the following options for our clients.

• Reducing the rate: We can ask your current lender to reduce your interest rate. This may include taking advantage of some fixed rates as low as 2.29%
• Interest Only - Holiday: We can ask your current lender to convert the loan to Interest Only for 6 months
• Repayment - Holiday: We can ask your current lender to pause repayments for 6 months. Interest will be capitalised and monthly fees will continue
• Refinance to a cheaper rate: We can look at refinancing to a cheaper alternative
• Business Loan Concessions and Loans: Some lenders are offering small business customer repayment holidays and unsecured cashflow lending

Most lenders will allow you to make extra repayments or principal reductions during the holiday period, however this may not apply for fixed rates.

Lenders will consider providing a repayment holiday under their current financial hardship program if related to COVID-19. Clients can apply for this via phone or lender websites. We have the numbers and links available on our Facebook site.

Call the bank or lender company now before you go into arrears. It is better to have that conversation before you are in need of assistance and are trying to catch up. Take into account the lenders are taking a lot of calls/emails so they may take a while to process.

Revise your budget and savings and be realistic if you cut back on your spending (and most of us have me included) then could you make interest only payments for 6 months, that will make the catch up a lot easier.

Free - ASIC MoneySmart https://moneysmart.gov.au/budgeting/budget-planner

When you talk to your lender, don’t be rushed to agree to what they offer, it may put you into a financial position you cannot get out of in 6 – 9 months, so it is important to consider what your situation will be at the end of the holiday period. This could include: 

• Your monthly instalment may increase
• Your remaining term may increase
• Your Credit Rating may increase and include adverse history reporting
  (Most lenders have advised this will not be the case and your credit history will not be affected)
• The amount of interest and fees you need to pay increases
• If you are still in financial distress at the at the end of the holiday you may be transferred to the recovery division of the bank. In extreme circumstances, this could then result in the lender calling up your security.