April Newsletter

This newsletter went to our database this week. If you are not getting our emails and want to be added just send us a message or email [email protected] and we will add you to our database.

Hi everyone -I hope you are all staying healthy and happy during this very stressful time. I have been in business for 16 years and have never experienced such a stressful time. Keep in mind we are all in this together and everyone is having a hard time at the moment in one way shape or form. One day (hopefully sooner rather than later) we will hopefully look back on this in far better times.

In this newsletter I have covered:

? What to do if you are in a hardship situation

? The new business loans available

? A story from my dad

? We are still open for business

HARDSHIP

Sadly as of Monday 30th March we have been advised that we are not allowed to give our clients any advice regarding what to do in hardship times in case it turns out to be the wrong advice under the NCCP BUT we are happy to help you make an informed decision.

The first thing that you need to know is that when you are NOT paying and taking a repayment pause or repayment holiday your interest will still be added to the loan. There may be a repayment pause but there is NOT an interest pause. You will either be required to catch up the payments after the 6 months (by paying higher payments) or your loan term will be extended (probably by a year or more).

Once again we must stress that you NEED to keep in touch with your lender in advance for all loan types (mortgages, credit cards , personal loans, car loans etc.) if you feel you will not be able to make the payments. Each lender has a hardship department that deal with this and unfortunately mortgage brokers cannot make these agreements with you on behalf of the lenders or give you advice on what to do HOWEVER we are here to answer questions so that you can decide what you want to do. Most lenders are offering 3 -6 months deferred repayment arrangements for people who cannot make the payments on their loan. Some lenders have announced this week that they are not going to charge default interest rates (higher rates) for clients behind as long as you call in advance BEFORE YOU are late.

Please DON'T leave it until you are behind or it MAY be listed on your credit rating whereas if you do that in advance it will more than likely not go against your credit report (which we may not care about right now but I am sure we will in 5 years’ time which is how long it will last on your credit report in most cases). The advice have been given is that if you do ring in advance MOST lenders won’t be listing this on your credit rating report as a breach of your loan contact but please check that as each lender will have different policies.

Once again I must stress PLEASE use the hardship terms , repayment holiday or deferred agreements available with a bank or lender if you NEED to BUT not if you don’t as with SOME lenders it will add interest at a higher than normal rate and lengthen the term of your loan. It may also result in higher payments once you come off the hardship terms.

If you want to book in a time slot for a 20 mins chat with me please call Megan Or Jess who have access to my calendar and can book you in -PH 02 49190478 or 0756131888

LOW RATE OR DEFERRED BUSINESS LOANS ON OFFER

We are still waiting on full information about this but from what we know at this point in time is that loans will be available through major banks and will be given for a 3 year loan term of up to $ 250k with the first 6 months of repayments not required BUT interest will still be charged during that first 6 months and added to the loan. I would not be using these loans unless you desperately need to (that’s my opinion anyway). The loan will be available for cash flow and equipment purchases but the applicant must prove how they will be able to pay this loan in full within 3 years and will require advice from their accountant. They will certainly not be easily available for everyone.

A STORY FROM MY DAD

I had an interesting chat to my dad last night (I call my parents most days for a chat) and he was saying that at the end of the 2nd world war (he was 7 back then) real estate was very flat and prices were cheap because for obvious reasons nobody was buying property during the war.

He said there was a local man on the south coast (my dad grew up down there) and he started buying real estate as soon as the war was over and bought as many cheap properties as he could.

His wife started hiding the paper from him so he couldn't look at any more / buy more. Anyway, he renovated each property then sold them when the market was higher and he ended up being a multi-millionaire and one of the richest men in that area.

I have a feeling that after this virus is over there will be some well-priced properties and opportunities for those that can buy which is why it’s going to be very important not to damage your credit rating during this crisis. If you end up with a default on your credit rating its likely to stay that way for 5 years.

My tips are:

- pay everything on time if you possibly can

- if you can't pay on time ring your bank/lender/provider and let them know you will be late (this includes things like phone bills/electricity bills etc.)

- people experiencing hardship will be able to access $10k of funds in their super tax free from mid-April. Perhaps consider using that to pay your rent or loans or save it for upcoming bills . Don't go on a shopping spree.

- Use this time to do your household budget and get your household back to the bare essentials. This will be a great time to work out the minimum amount you can live off per week

NEW BUSINESS- HOT AT THE MOMENT IS REFINANCING

Are you aware that we offer non face to face personal lending and financial mortgage advice? We are operating via video call.

In light of the recent COVID 19 pandemic we are (like many other businesses) trying very hard to find ways to make it easier for our team to still support our clients and keep our team in employment.

Services we are able to offer you if you are still in stable jobs (and yes some people are):

? Personal loans- for any worthwhile purpose

? Debt consolidation

? Home loan refinances – are you on a competitive rate or not sure? Check your rate and email us to find out more ! There are some really attractive rates available for refinances for anyone in stable jobs.

? Borrowing capacities for your next purchase (we realise you may not want to buy something just yet but the time will come and it’s great to know what you are likely to be able to borrow down the track when the country is operating again)

Most lenders are now allowing us to do non face to face appointments (following strict guidelines for the identification process).

If you would like to book a time slot for a video or phone call please call us on 02 49190478 or 0756131888 or email [email protected] or [email protected]

Anita

Anita Marshall

Mortgage Broker

Advanced Finance Solutions

Ph 07 56131888 QLDt or 02 49 190478 (NSW)

Email – [email protected]

Australian Credit Licence Number 364514

Winner – AFG NSW/ACT – Top 20 Groups 2010

Winner – AFG NSW/ACT- Regional Female Broker of the Year 2008/9

Elite Business Writer- 2010 & 2009 – Mortgage Business

Top 5 Finalist – AFG Female Broker Award 2011

Top 5 Finalist – AFG NSW/ACT Groups 2011, 2012, 2013, 2014

2nd Place- AFG NSW North Coast Regional Lenders Choice 2016

Finalist - Financial Services- Port Stephens Annual Business Awards 2016 , 2017, 2018, 2019

Winner – BNI Multi Awards 2016, 2017 2018 & 2019

Finalist – Women in Finance 2019