DATE: 01/04/2020
CATEGORY: Awesome news, Blog, Buying a house, Housing Market, Managing risk, Mortgages, NZ Economy

have your finances been affected by COVID-19?

The world may be scrambling for toilet paper but for many, the essentials in short-supply are maintaining cash flow and sustaining lifestyle.

Anxiety, fear, and stress levels have left no one untouched. Careers, businesses, and certainty have been destroyed overnight. But together we will get through this. Nobody will lose their homes if we all heed caution and take advantage of financial assistance and smart money-saving strategies.

Managing stress is critical to maintaining a healthy immune system. However, we know this is easily said and hard to practice when you feel submerged in financial dread or are juggling childcare while working from home and trying to get ahead.

have you experienced an income drop?

With the Government’s and banks support many people can access the option to take a mortgage holiday.  

These don’t come without a cost. While you may get a break from repayments, the interest still rolls, but at least it will alleviate financial pressures and provide some certainty in the months that follow. 

There are three key ways to help manage your mortgage. At the end of this blog, you will find a link that will take you to a downloadable information sheet. This is designed to help you make an informed choice.

Jumping ahead a little bit, we are not great fans of mortgage holidays.

here are a few things to bear in mind before you lock in a mortgage holiday

There is no such thing as a holiday. It’s actually a deferment where the money will either be added to your outstanding balance or your mortgage term will be extended. 

A better option could be for you to apply for a period of interest only payments on your mortgage. The benefit of this is the balance of your mortgage will still be the same as it is today at the end of the interest only period. 

However, for some, there may be no other option but to ask for a repayment holiday and we will be able to help you with that.

Regardless of your preferred option, further down the track once things settle down, we can look to put in place strategies to catch up and get your mortgage back on track.

how long will it take to action?

The mortgage repayment holiday scheme enables banks to fast-track the normal application process. 

Lenders will not have to go through their normal requirements under responsible lending rules to understand why someone was experiencing hardship. In short, if you need mortgage relief the process has been simplified to make it easy.

Remember, this is no time to feel ashamed or blamed. No one is untouched by the COVID-19 crisis. Even the most financially astute, careful and prudent have been sideswiped.

Who could have imaged the whole of New Zealand would be in lock-down in as little as 48 hours? How could pilots and those in travel-related industries foreseen their jobs would be under-threat or destroyed in the short, medium, or longer-term? New Zealand is the kingdom of small and medium independent business owners. From plastic surgeons and movie moguls to publicans, nail technicians and beauty therapists—so many livelihoods have been severed by Government decree.

It’s easy to feel out of control. Don’t lose hope. We are not powerless. There are things we can do. And no one knows this better than ingenious Kiwis.

Now may be the time to embark on a financial fiscal do-up. Knock down outgoings and plug leaks where you can. Consider building a lifestyle of “targeted frugality”, where you spend less in chosen areas that you can control and plan to simplify where you can.

Is there an opportunity to develop a side-hustle or generate income from a hobby that helps you earn more? These are just a few, of the many out-of-the-box thinking you may consider.

Reach out and seek emotional support if needed. Don’t suffer in silence. We’re here to help make any changes you need. The banks have made the process simple. If you’re an existing Awesome Mortgages client get in touch and we’ll walk you through.

were you about to buy a property?

Don’t discount your plans just yet. Interest rates are very attractive and there are some attractive properties on the market. 

The New Zealand property market was holding up well in the early stages of COVID-19 and had been experiencing strong price growth over summer. With banks and the Government coming together to support workers, businesses and the risk of property owners losing the shirt off their back or the roof over their head reduces, minimising the risk of a market crash. 

Logistically, the lockdown proposes challenges around open homes and auctions and also access to professionals such as solicitors. We can help you navigate these disruptions to still get an outcome. 

you have a remote-ready expert on your side

Questions? Plans? Email me, call me, Skype me, Zoom me, or Facetime. Having made the move to location-independent, technology-enabled smart mortgage advice, I’m fully digitally enabled. Every part of the process can be done online and over the phone, without a face-to-face appointment.

So, it’s business as normal here at Awesome Mortgages. Well, nearly normal. Like all industries, those related to house-buying activities are heading down an uncertain road. Open homes have been cancelled, settlements deferred, plans to buy postponed and offers rescinded.

So, yep, we are all in this together.

Remember, what is truly important at this time. Your health is your wealth. Whatever happens in the external world, this is a time to make self-care a priority. We’re not just talking about washing your hands.

It will right, and we will be alright. It’s about treading water with the right strategies and support. We’ve all just got to keep sane during this global time of craziness.

While we may be taking a financial bath, we can still look ahead and put our minds to savvy ways to accelerate our lives and our lifestyles.

Remember, if you’re one of our awesome valued clients don’t hesitate to get in touch with any further questions.

Stay sane. Stay safe. Somehow, some way, retain a sense of humour.

Download the COVID-19 Repayment Relief Option Guide here>>

The new Toyota Corona?

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Posted in Awesome news, Blog, Buying a house, Housing Market, Managing risk, Mortgages, NZ Economy

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