If you are finding it tough to meet your current financial obligations or you are just interested in reviewing your current home loan, then you are not alone. Our lending team stand ready and able to assist with your options during this difficult time.
Turbulent does not even begin to describe 2020 so far. As a result of COVID-19 and not forgetting the bushfires, thousands of Australians are out of work, with jobless rate at a 22 year high. Many others have had their hours reduced or have been temporarily stood down.
In this period of uncertainty, at the very least many will be taking a closer look at their finances to make sure their current loan arrangements are right for them. Our lending team have the experience and knowledge to assist in a variety of situations and are simply a phone call away. They are in regular contact with their lender panel and make it their business to understand the different options lenders currently offer.
And while the options can seem straight forward, it is easy to miss the details and differences that can add up, particularly over a 30-year term. For example, a number of banks are offering to temporarily freeze mortgage repayments for three or six months. While this may seem like a good option, it is important to fully understand the implications. This could mean that the total debt will increase. Of course, depending on an individual’s circumstances, there may be a number of available alternatives that may reduce repayments while not increasing your interest bill as much in the long term.
Refinancing too may be on the minds of many as a result of the Reserve Bank cutting rates and banks passing them on, to varying degrees, as well as access to a range of competitive fixed interest rate options on the market. A discussion with your local mortgage broker may be just the ticket.
While a simplistic view of what constitutes a great mortgage is the one with the lowest interest rate, our lending team know that what suits one person might not necessarily suit another. For instance, fixed interest rates can offer piece of mind as interest rates increase, but they can be the cause of anxiety if rates fall or if unforeseen circumstances require a change.
Mortgage Broker enquiries have surged during COVID-19
Brokers have been an important avenue in these uncertain times in navigating options for their clients to assist them make considered choices around their individual loan circumstances. Our lending team continue to assist their clients by securing better interest rates, fostering competition, and enabling first home buyers to access the market more efficiently with a higher level of certainty. The trend is reflective in this report where AFG recently recorded its largest quarterly lodgement result which is 30% increase on the same time last year.
No matter what your circumstances are, mortgage brokers can actively assist you in navigating your current situation. So, if you’ve been thinking about reassessing your finances contact Matthew Guy from our lending team.