If you are in the process of applying for finance or near to settlement, the good news is, you can keep moving (without even leaving the house).
COVID-19 has temporarily forced us to change the way we live, but it doesn’t mean you have to drop everything, especially your dream of home ownership. But you will probably have some questions in this ever-changing environment.
Will my finance be approved in the current market?
Your Resolve mortgage broker and the banks are still open for business. If there’s been no change to your employment or financial situation over the past few weeks, then we’ll continue with your application as planned.
If there’s been a change to your work situation, for example, being asked to take extended unpaid leave, reduced shifts or if you’re stood down, we have an obligation to notify the lender. This is to protect you and allows the lender to reassess the deal based on the amended scenario. This ensures we are not proceeding with finance that may place you into financial hardship in the future. This includes deals formally approved but not settled.
What if my employment changes during a build?
Resolve Finance and ABN Group builders will always work together with you to try to find a solution to short-term changes in circumstances, to support you during tough times.
New hardship provision to support Australian home owners during COVID-19
Once your build is under way, and right through to when you’re living in your new home, if your employment changes because of this pandemic, you have options. The government has announced they will support Australians who are unable to pay their mortgage through new hardship measures. Lenders can choose to support customers in a range of ways:
- extending the loan term (to reduce payments)
- reducing payments
- repayment holidays of up to 6 months
- restructuring debt
- or a combination of these.
This is a regulatory requirement, so customers can have confidence that they’ll be dealt with fairly and with empathy by Lenders.
Insurance has never been more important
For new home buyers, it pays to look at loan protection insurance. It gives you peace of mind by providing financial support during a range of unexpected situations like:
- involuntary unemployment
- serious illness
- death or terminal illness
- accidental injury
Resolve Finance’s insurance supplier ALIGroup will payout during COVID-19 events.
Key questions people ask are:
1. Would a Death Benefit be payable if it’s a COVID-19 related death? The answer is YES, subject to the terms and conditions of the policy.
2. Would a Living Benefit be payable if it’s a COVID-19 related trauma event? The answer is YES, subject to the terms and conditions of the policy.
3. Would an Involuntary Unemployment Benefit be payable if it’s an involuntary job loss associated with COVID-19? The answer is YES, subject to the terms and conditions of the policy.
In short, there are no exclusions specifically due to COVID-19.
Refer further information here: https://www.aligroup.com.au/covid-19
Government assistance during COVID-19
The government has announced a range of assistance options for people impacted by COVID-19, which can provide some reassurance for home owners.
- New Jobseeker payments from Centrelink: COVID-19 supplement of $550 per fortnight paid in addition to Jobseeker payments, for up to six months.
- New JobKeeper Payment: Businesses will be able to access a subsidy from the Government to continue paying their employees. Employees who have been stood down without pay can potentially receive $1,500 per fortnight for up to six months.
- Access to superannuation: those in financial stress can access up to $10,000 per annum from their superannuation for the next two years.
- Small business owners: those who employ staff and have an annual turnover of less than $50 million can receive a payment equal to 100% of their salary and wages withheld, from 28 April 2020. Payments will be between $10,000 – $50,000.
- 2 x Government stimulus payments: two payments of $750 each will be paid to social security, veteran and other income support recipients (including family tax recipients) and eligible concession card holders. This will happen on 31 March and 13 July.
Full details at www.servicesaustralia.gov.au/individuals/subjects/affected-coronavirus-covid-19
How to stay in touch with a Resolve Mortgage Broker
Finance interviews can be conducted via video using Microsoft teams, FaceTime and other video platforms. Our paperless application process means the finance application can be managed without the need for face-to-face meetings.
We are open for business! Contact us today.