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Has anyone paused their homeloan repayments?


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17 replies to this topic

#1 avocado toast

Posted 23 March 2020 - 06:26 PM

Just wondering if anyone has successfully done this with financial pressures from Covid19

#2 Popper

Posted 23 March 2020 - 06:42 PM

Hi avocado toast. I am a banker and spent all day calling my clients to offer deferred payments or to switch to interest only. Call your banker and have the conversation if you need to. Remember if you defer though you end up owing more money after the payment holiday expires. Always better to at least pay the interest if possible. Good luck. You are not alone

#3 ceeshell

Posted 23 March 2020 - 08:16 PM

We’re waiting for a call back from our bank. We are hospitality and have just lost half our business. The only way to keep the business afloat is to basically stop paying ourselves.
Fingers effing crossed, is all I can say.

#4 daybreaker

Posted 23 March 2020 - 08:34 PM

Yes, filled out the form online today. Our mortgage is large so definitely want to pause the payments for now. I'm happy to pay it later when I know we'll have the income back.

#5 *~*emma*~*

Posted 23 March 2020 - 08:36 PM

I’m another banker spent all day ringing my clients. Many tears shed. I’m a business banker so my calls were to impacted customers.
It’s quite easy to do, and like PP said it does increase the repayments after the deferral but small sacrifice to be made currently 👍

#6 Krio

Posted 23 March 2020 - 09:34 PM

On Friday we called up our credit union and had our mortgage changed to interest only for 3 months. The people that I spoke with were fantastic, gave us all of the information we needed and were able to make the changes over the phone. I also appreciated the empathy and time they gave me - it must be very emotionally draining for them to hear everyone's story but I wasn't rushed or made to feel bad about having to do this.

Our monthly repayments will increase a bit once things return to the usual rate but it's worth it to still have our home.

My husband is a contractor, his hours have been cut and how much work left is an unknown so hopefully this will get us through the next few months ok.

Edited by Krio, 23 March 2020 - 09:37 PM.


#7 Literary Lemur

Posted 23 March 2020 - 09:45 PM

What information has to be supplied for interest only to be approved?

#8 Krio

Posted 23 March 2020 - 09:49 PM

View PostLiterary Lemur, on 23 March 2020 - 09:45 PM, said:

What information has to be supplied for interest only to be approved?

They asked about our situation and why we needed to make the change. I was very open and honest about our situation and didn't have to provide any paperwork or further details.

#9 Literary Lemur

Posted 23 March 2020 - 10:12 PM

View PostKrio, on 23 March 2020 - 09:49 PM, said:

They asked about our situation and why we needed to make the change. I was very open and honest about our situation and didn't have to provide any paperwork or further details.

That's great

#10 hills mum bec

Posted 24 March 2020 - 10:22 AM

We will have no choice but to make that call to the bank today.

#11 born.a.girl

Posted 24 March 2020 - 10:46 AM

View Post*~*emma*~*, on 23 March 2020 - 08:36 PM, said:

I’m another banker spent all day ringing my clients. Many tears shed. I’m a business banker so my calls were to impacted customers.
It’s quite easy to do, and like PP said it does increase the repayments after the deferral but small sacrifice to be made currently

What an exhausting day you must have had - clearly still having a job at the moment is a bonus for anyone, but talking all day to devastated people would take its toll.

I was accountant at the time of the 17% home loan interest rates in the 80s.  I had staff coming to me in tears as they'd keep getting letters every month telling them their repayment was increasing.  Finally, the banks started offering freezes with the clarification that you'd owe more at the end of the year than you did at the beginning (for many) but at the end of that, a significant number of them didn't understand that.

Doubly devastating for people who were eventually forced to sell, too, for far less than they owed.

That's my fear for down the track.

#12 Greatmum

Posted 24 March 2020 - 11:51 AM

You don’t have to prove anything. We did it a few years ago when we just couldn’t afford it. We changed to interest only indefinitely. Ended up on that for a few years was either that or lose home be homeless.

#13 Ruf~Feral~es

Posted 24 March 2020 - 12:07 PM

Have had a look at our bank website and facebook.  Lots of angry people - looks like they aren't passing on the interest rate cut to most people, and no option of pausing Mortgage payments.  You need to 'apply for financial hardship' and they will assess it.......

One person said they had applied, and were told to use their credit cards and savings first, and then apply again!  

This is a bank that is owned by one of the 'big four' - Commonwealth has offered the mortgage pause, but this bank hasn't.  I hope they do in the near future - I'm kind of worried that if we apply for financial hardship, they might want to reassess our assets and sell the house from under us.  (Yes, maybe an overreaction, but I don't want to alert them to our situation if there is a risk)

#14 ~floss~

Posted 26 March 2020 - 10:36 AM

We called our bank to switch to interest only and they wanted to change our rate from 3.94 (fixed rate) to 4.44%.
They also said we had to provide a whole bunch of proof to do this.
I didn't see the value it paying a few hundred more in interest  a fortnight (and then at the end of the year all our payments would be increased to cover the year of interest).
The wait time was over 90 mins as well.

We did not feel at all supported and the person on the phone was quite rude.

#15 Bam1

Posted 26 March 2020 - 10:45 AM

The increase in IO rates were to make IO less appealing for more responsible lending as determined by APRA. It was done at a time when IO could be considered not necessary, hopefully with the extreme change in circumstances APRA will allow the banks to reduce the IO rates.

#16 Charli73

Posted 27 March 2020 - 06:09 PM

View Post~floss~, on 26 March 2020 - 10:36 AM, said:

We called our bank to switch to interest only and they wanted to change our rate from 3.94 (fixed rate) to 4.44%.
They also said we had to provide a whole bunch of proof to do this.
I didn't see the value it paying a few hundred more in interest  a fortnight (and then at the end of the year all our payments would be increased to cover the year of interest).
The wait time was over 90 mins as well.

We did not feel at all supported and the person on the phone was quite rude.

Who was this? We’re with Westpac and I was considering IO for a while until the Covid storm passed...

#17 ~floss~

Posted 28 March 2020 - 08:51 AM

View PostCharli73, on 27 March 2020 - 06:09 PM, said:

Who was this? We’re with Westpac and I was considering IO for a while until the Covid storm passed...

Commonwealth

#18 IamzFeralz

Posted 28 March 2020 - 09:02 AM

I am with a smaller institution  Newcastle Permanent and they passed on the recent interest rate cut.  I am at 2.84% now.  The Big 4 are pathetic.  

I would suggest if you used a Mortgage Broker for your mortgage they may be willing to help with negotiating rearrangements with the bank.  My mortgage broker sent an email to his clients offering to help.




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