Repeated and extended lockdowns are putting a lot of pressure on Australians’ finances, and that Delta strain doesn’t look like it’s going away anytime soon. With Greater Sydney in its third month of lockdown, many home-owners fear they may not be able to meet their mortgage repayments, as well as wonder what they can do to avoid defaulting on their repayments. Others experience a most uncomfortable situation, with their home loan approved by their lender but not yet settled.
Over the next two weeks, we’ll share a series of FAQs on some of the main concerns we hear from clients.
Here’s our first one for today:
FAQ #1: If I use government assistance now to meet mortgage repayments, will it impact my ability to refinance in the future?
You must be aware that when you apply to refinance, you are basically applying for a new loan. Therefore, your income and expenses are assessed the same way as they would be when you secured your current loan. Lockdown payments are not considered an acceptable form of income by most lenders.
If you receive COVID relief payments from the Government and would like to refinance, it would be wiser to postpone your refinancing application until at least three months after you stop receiving Government support.
Check out this space next week for our FAQ #2 or please get in touch, let’s have a chat!