COVID-19 – 9 Yards FAQ
What assistance is the govt/banks/insurers offering?
For employers, the govt is offering a wage subsidy of $585.80 per employee covering 12 weeks, paid as a lump sum. This is to cover the immediate strain of paying and retaining staff.
We have assisted a number of our business clients with these applications – they are easy to complete and paid out quickly.
Mortgage payment holidays of up to 6 months will be available. Banks are also making it easier for you to convert your lending to interest only.
Insurers are also offering payment holidays for hardship cases.
What is a mortgage holiday and how does it work?
A mortgage holiday provides short-term cashflow relief.
Under a holiday you are not required to make any payments at all – the interest, however, does still accrue. This means that at the end of the payment holiday your loan will have increased – and your payments thereafter will be higher. You end up paying more interest over the life of the loan.
How do I access a mortgage payment holiday or interest only offer?
If you would like to discuss which options if any are best for you please feel free to contact us.
Links below for how to access these offers
Review your income and expenses and how these will change over the coming weeks. Has your income reduced such that you are unable to afford your loan repayments? – If yes can you afford interest-only payments? This may be a good option for you.
The mortgage holiday is for severe financial hardship – perhaps a job loss and is not advisable if you can afford your current payments or interest only.
It is also worth noting that some expenses may reduce over this period – travel costs, childcare, entertainment.