Across Australia, the Covid-19 mortgage pauses will soon be coming to an end. And while approved deferrals on repayments have been invaluable to many borrowers, when it comes time to refinance, negotiate a better rate, or simply consolidate debts, those deferrals may lead to some difficulties.
Luckily, WhiteStar might be able to help. Our Senior Broker Jo recently approached our leading lenders and asked them how they intend to treat new and existing customers looking to take out a new home loan, get a better deal, or increase their borrowing to carry out home improvements or purchase another property.
What Jo found…
The most common feedback from lenders was that you’ll firstly need to be out of your deferral arrangement.
Some lenders required a minimum of one to three months of new repayment history to show that you’re back meeting your commitment, others however, expected to see up to six months of consistent repayments before they’ll assist.
Who is most affected?
We know, from experience, that quite a number of people took the offer of deferring payments when they didn’t actually need to. And while many of these borrowers have since chosen to go back to making regular payments, some are still on the deferral, which means their options for refinancing will take longer to access. This means they can’t take advantage of better options quickly if they need to.
Whatever your situation, now is an ideal time to chat to the team at WhiteStar. We can guide you on getting back to normal repayments, or on getting your finances in order to give you the best chance of refinancing in the future – whether that’s in a few weeks or a few months.
Of course, the future still remains uncertain, and although the economic landscape is slowly looking better, no one can really predict what’s going to happen next or how long Covid will affect Australians and lending. But at least if you’re in a good position with your repayments now, you’ll hopefully be able to seize opportunities more quickly as they arise.