A message during the coronavirus crisis
Reventon is very conscious of the fact that COVID-19 has had huge impacts on the share markets, which may have also impacted our clients and readers. While, at the time of writing, most Australians are less impacted by health implications, the broader economic implications are hitting home and we understand this may be difficult for many people.
In these uncertain times, we would like to offer support to help ease financial pressures and help you to stay on track managing your budgets. Here are some options that you may wish to explore.
1. Review your home loan to achieve a lower interest rate
Many people will be aware that interest rates are at an all-time low and likely to be so for a while. This means that, if you are worried about meeting your mortgage payments and are seeking solutions, you may find more affordable options being advertised. Consider reviewing your home loan, taking into consideration any early repayment fees or loan arrangement charges, to determine if you could be better off switching deals.
It is extremely important to do this whilst you have employment, so if you feel that you or your partner’s income could be at risk in the future, please act now.
2. Review your fixed rate loan
If you are coming off a fixed interest loan or have less than 12 months before your fixed rate loan expires, you may wish to take this opportunity to review your loans as a precautionary measure. Many banks are offering short-term fixed-rate loans to provide financial security during these uncertain times. If this is something you wish to explore, get in touch with the Reventon team and one of our experts can guide you through the process.
3. Communicate with your mortgage lender
If you have lost part or all of your income – or you think you may do in the future – it’s important to reach out to your bank and discuss your circumstances as early as possible. Many lenders are allowing flexibility at this time and will be able to provide you with advice and guidance on next steps, or suspend your mortgage payments for a pre-determined period. You must call to arrange this – please don’t ignore the situation, panic, or make a hurried decision alone. Reaching out is the best thing you can do.
4. Seek support as an investor
As an investor, it’s understandable you may be concerned for your finances during this time – particularly if you have lots of loans. Similarly, you may have tenants who are unable to make their rent payments where you may need to reduce the rent for an agreed period of time. It’s important to seek support as early as possible to establish a safety strategy in all cases. You may wish to take advantage of a low property market and low interest rates, or you may be seeking to safeguard your investments for the future. We encourage you to get in touch with the Reventon team to discuss your options.
5. Keep up to date with changes
As we all know, the situation around COVID-19 is changing frequently, with the Government rolling out economic measures in order to cushion the impact of the crisis for everyday Australians. You should ensure that you regularly check the relevant Government channels for the latest updates and schemes that you may be eligible for.
We’re encouraging our clients or those who are struggling financially, to contact Reventon as a first step should they be concerned about their position or find themselves unable to make repayments due to unforeseen circumstances. Early assistance is key to getting ahead of the curve and future-proofing your finances. Get in touch with one of our expert team members to discuss how we can help.