The JobKeeper payment has been made available for businesses who are remarkably affected by Covid-19, where employers, sole traders and other entities who are eligible can apply to receive $1,500 per eligible employee per fortnight. Among the global outbreak of Covid-19, over 1.4 million Australian households are suffering mortgage stress, with close to 100,000 coming close to defaulting on their loans. With JobKeeper payments ending in September, market analysts and economists predict that mortgage defaults are on the table for cash-flow stressed households, where mortgage repayment holidays are ending. Based upon household surveys, the Digital Finance Analytics released data revealing that 37.5 percent of Australian households are experiencing mortgage stress, translating to 1.42 million households.
Along with JobKeeper, a mortgage deferral scheme is currently set in place by Australia’s banks, where customers are provided with the option to pause their loan repayments for up to six months. Kristina Carson, a Brisbane café owner, has deferred her mortgage payments to assist her through
the worldwide pandemic which devastated her business. Although Carson understands that it is not a “get out of jail free card”, the mortgage deferral scheme and JobKeeper have enabled Australian households to keep afloat during the pandemic.
However, with both initiatives ceasing to a halt in September, mortgage repayments are an ever- present concern for Australians. Australian’s receiving JobKeeper payments may still be unemployed, and therefore unable to afford their mortgage repayments, possibly resorting to defer their mortgages for that period of time. Rachel Slade, the group executive for personal banking at the NAB, explains that there is limit to how
long mortgage deferrals are effective. Deferred mortgages are still accruing interest, along with household debts rising. Temporarily hidden behind mortgage repayment holidays is a mountain of debt, as articulated by the CEO of WayForward, David Berry "I think as people start to return to work, they are going to realise the situation that they are in and they are going to want to find a way out of it."
In order to avoid such a situation, finding a mortgage broker that is able to tailor for your personal circumstances could be the key to surviving such financial difficulties. With the uncertainty associated with the pandemic, Australian households would be more diligent in managing their financial situations if they are able to find a loan package that suits their personal situation.
This is where brokery can help. In order to deal with such complex financial situations, finding the right broker to suit your personal
situation is crucial in finding a solution tailored to you. Brokers such as Jason He are finding clever and unique ways to help their clients survive and thrive the current environment. It 's worth finding out.
Brokery acts a a source of referral only. We make no assertions or claims to the capability of the individual we have provided for your review. brokery is an information service that provides you with the information you need to compare mortgage brokers and personal bankers in your area. We do not provide financial advice so please appreciate that there may be other options available to you than the brokers and bankers we provide to you here. You should consider seeking financial advice and consider your own personal financial circumstances when comparing products and brokers/bankers.
Kayla Trajanovski, 18th July 2020
5 Min read
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