Help is available for your mortgage and business loan
We know that even the smallest changes can have a big impact on your finances. So we’re here to help you review your options.
Over the past few days, the government has announced a number of measures to provide support to individuals and business owners facing hardship due to Coronavirus (check it out here).
Coupled with the rate cuts by the RBA, this means there are plenty of options out there right now. We’re here to help you make sense of them so you can make decisions based on facts – not fear.
At Two Acre Finance, it’s business as usual with the team working safely from home. We know that many of our clients are incurring higher rates of interest and could be eligible for lower rates or benefit from refinancing to help cushion the blow right now.
Equally, many of our small business owner clients may need access to funds quickly in order to keep things moving during this uncertain time.
If you’re wondering how to manage your loan repayments or access unsecured business loans during COVID-19, we’ve got your back. We’re here to help review the options available to you.
Need help with your home loan?
The banks have always had the ability to offer repayment holidays during times of hardship and this time is no different.
While the option to pause your mortgage may be enticing right now, it’s important to think six months ahead.
Are there renovation plans or future purchases on the cards? Do you want to have the flexibility to change your loan down the track to take advantage of cheaper interest rates if they arise?
Pausing your loan repayments may have an impact on your future borrowing ability. When this time has passed, and it will pass, you’ll need a good repayment history in order to access funds.
In addition, if you pause your repayments the interest will continue to accrue on the loan and will be added to the outstanding balance. You’ll pay more interest over the life of the loan as you’ll pay interest, on interest. At the end of the repayment holiday, your minimum loan repayments may also increase to catch up the repayments.
The good news is, there are other options available to you if you are experiencing hardship:
- Change your repayments to interest only
- Use any existing redraw in the account to help fund repayments
- Refinance your loan to a cheaper rate and reduce your monthly repayments (and with rates as low as 2.19% why wouldn’t you?)
- Debt consolidate personal loans, car loans and credit cards into your home loan to reduce your monthly outgoings and have one cheaper repayment for all loans
We can help with all of this. But if none of the above is an option for you right now, and you need support pausing your mortgage repayments, we can also help with that.
We’re opening up our calendars this week for free loan review consultations as a way to help you take control of your finances during this trying time.
Need help accessing funds for your business?
Small businesses are the heart of our economy and the government has acknowledged that in its stimulus package.
There is an opportunity for small businesses to access lending with six months interest free with the government as a guarantor.
Plus, to help keep loans affordable, the RBA has guaranteed a 0.25% rate for three years to banks lending to small business. This means lower interest rates on business loans for the next three years. We’ve already seen some business loan interest rates reduced by up to 4%.
Small businesses will also be able to temporarily access credit without the usual headaches of having your income and expenses scrutinised as responsible lending obligations are relaxed. This means small businesses can get access to loans quickly and efficiently.
We know navigating loans can be overwhelming at the best of times and we’re here to support you and get the best possible product for you and your business.
Need help with something else?
If you require support pausing your mortgage repayments we can help with that, too. There has been a lot of noise around the government stimulus package and its changing on a daily basis. Our friends over at Smart Business Solutions have done a great job of summarising the package to date. Check it out here.