Early Access To Super To Keep Up With Home Loan Repayments
Mortgage brokers have seen this struggle first-hand. After the pandemic hit across the world, the property market in Australia has its fair share of stories.
But no one has ever seen such a global event with such a huge impact on different sectors than the Covid-19 pandemic. In fact, the pandemic’s impact on the property market has dwarfed that of the global financial crisis (GFC) in 2008, which left the world economy crumbling.
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In order to avoid missing repayments and debt piling up, there are ways by which homeowners can protect their finances during this time of high uncertainty and avoid missing repayments.
Following the Covid-19 pandemic, the Australian Government has issued a policy allowing the early access to superannuation until December 31, 2020. Qualified members who were severely affected by the pandemic, economically, may access their super and get as much as $10,000.
Individuals who have recently lost their job due to the pandemic may access their super. Individuals or families who are recipients of different financial aids such as job seeker payment, youth allowance for jobseekers, parenting payment, special benefit or farm household allowance, are also eligible for an early access to their super.
One benefit of accessing your super within this period is that you won’t have to pay for taxes.
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Explore other options
Early access to super may impact on your retirement in the future, which is why before doing so, make sure you have exhausted all other financial options available for you. Accessing your super should be your last resort and as such, must only be considered if all possible options have already been considered.
Some of the options that one must explore first before accessing one’s super include income support payments, household support payments, and JobKeeper support payment, among others.
If you are unsure whether it’s the best time to access your super or not, make sure to talk to your trusted lender or financial advisers the soonest time possible. They are always ready to help you navigate in these trying times, especially on how to best manage your finances and keep up with your home loan repayments.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today.!