Should I pause my home loan repayments during COVID-19?
2min read | 329 word count
Many people in our community have been affected by COVID-19 and lots of banks have been offering home loan repayment pause arrangements to customers in financial hardship. If you have a home loan and have found yourself in financial hardship, you may be wondering if you should pause your mortgage repayments.
Our research has shown that home loan repayment pauses are being offered by many banks in Australia for between three and six months, meaning customers don’t need to make repayments for up to six months in some circumstances.
A really important thing to keep in mind is that interest will continue to be calculated and added to your remaining home loan balance during any pause period, meaning unpaid interest during that three to six month period gets added to the principal of the loan.
“a six-month mortgage holiday on a $400,000 loan could impact a customer by as much as $21,833, by the end of the loan term”
A recent Canstar analysis showed a six-month mortgage holiday on a $400,000 loan could impact a customer by as much as $21,833, by the end of the loan term.
For some people, a home loan repayment pause is the best option for them, for other people, there might be alternative ways of alleviating short term financial pressures.
It’s tough times and financial hardships can put a lot of strain on families, that’s why we are available for a free phone chat to help you to understand how a home loan repayment pause might affect you in the short and long term. Tell us about your current situation, and we can help by providing you with simple to understand information and potentially other options which might take some of the pressure off you! After all, that’s what friends in finance are for!
Give us a call on 07 3857 4613 today or fill out your details below and we’ll call you!
There’s no sales team here, just real, local folk ready to help you out.