Mortgage holders should be seeking expert advice to navigate through the range of options on offer from lenders to help them cope with the economic challenges of the coronavirus (COVID-19) pandemic, says a finance brokerage.
While there are now generous government assistance packages available to those in distress and offers of relief from banks, people need to pay careful attention to their financial decisions nowadays, according to My Mortgage Freedom CEO Anthony Alabakov.
“The current events in Australia are proving to be very challenging for a lot of people with drastic changes to income, employment and overall disruption to your financial security as a result of the COVID-19 pandemic,” Mr Alabakov said.
Options launched by banks for mortgage relief include switching to interest only and deferring repayment, among others.
However, these are not “one-size-fits-all” solutions, according to the mortgage expert.
“Banks have now officially launched different options to provide mortgage relief in a number of different ways. These options include switching to interest only, deferring repayments for up to six months, unlocking equity to provide security to meet your commitments or extending your loan term.
“But it’s not a one-size-fits-all solution, there are a number of different options to consider and people are best to seek independent advice from an expert rather than make a hasty decision,” he highlighted.
Home owners are strongly encouraged to take advantage of the services provided by property professionals in order to be able to make smart decisions amid the ongoing health crisis.
Mortgage brokers are now offering assistance and innovative solutions to anyone who needs help to review their current mortgage commitment.
Some of them are willing to give a free consultation to work out the best strategy for specific home owners and ultimately help them navigate their way through this difficult time.
“Mortgage holders need to carefully consider their options, but they should not wait too long. As the days and weeks go on and the situation deteriorates further, banks will become inundated with customer calls relating to hardship,” Mr Alabakov concluded.