Home Loans Repayment Relief Amid Pandemic With Household Relief Loan
While home loans arrears remained stable relative throughout in 2020, things are going to get worse in 2021, Fitch Ratings reported.
In fact, as early as first quarter this year, the outlook for the second quarter this year is a little bit gloomy for the numbers of home loans delinquent across Australia.
Home loans repayment woes
After new rounds of lockdowns have been imposed across the country, many struggle to make repayments to their home loans, let alone put food on the table.
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Despite lockdowns across the country that significantly impeded one’s ability to do repayments, the government has been rolling out different measures in a bid to help homeowners with their existing loans.
This is on top of the several measures on the part of the lenders such as deferring penalties for late repayments or total deferment of repayments to a later date, which helped curb reposition rates across the country.
For starters, the government website MoneySmart.gov.au has compiled a list of options that homeowners can consider should they experience difficulty in making repayments as a consequence of the pandemic.
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First of the options that homeowners can explore is the Household Relief Loan, which is a government initiated relief rolled out as early as February of 2020. With this option, homeowners can borrow as much as $3,000 interest and fees free and can be paid within 24 months.
Mortgage repayment options
Dubbed as the Household Relief Loan, this can be used to pay for utilities or for paying rents. To know whether you qualify for this loan and to know how to apply, you may visit their application portal for more information.
Apart from this, there are also other alternative solutions both from the government and directly from lenders that anyone with an ongoing mortgage can look into. Make sure to get in touch with your broker or lenders to avail of these remedies. Government websites also provide updates on these forms of services.
Are you having difficulty with your home loan repayments and want to explore possible options on how to manage your debts? Talk to one of our trusted brokers and will guide you through the intricate process of debt management during this time of high uncertainty. Visit our website or schedule your appointment by calling 1300 55 10 45.