Loans, Deferment and Options During COVID
COVID has placed unprecedented pressure on Australian families. What are your options for saving money during the current crisis?
Many Australians are struggling after 18 months of lockdowns and ever-changing workplace requirements and it is important to remember that there are many options available.
From loan deferrals, grants and business payments, disaster payments, reduced rates and debt restructuring, there is an option that can help take some out of the stress out of this incredibly stressful time.
Loan deferrals on home and business loans
Many lenders can and will offer repayment deferrals or reductions on business loans, for a period of up to 3 months, if the loan is in good standing with their lender.
For home loans, lenders may offer loan referrals on a month by month basis, or in some cases, the waiving of fees or reducing of interest rates, to help people stay on top of their commitments.
Since July 8, more than 14,500 home loans have been deferred, while more than 600 business loans have been deferred.
“Support is available to all small businesses and home loan customers significantly impacted by current lockdowns or recovering from recent lockdowns, irrespective of geography or industry,” says Anna Bligh, CEO of the Australian Banking Association.
Business grants and payments
As you’ll see below, each state and territory has their own grants and schemes available for businesses and individuals.
Lenders have the ability to wave their fees in order to help you during these troubling times, talk to yours to find out what they can do to help.
As the situation is constantly evolving, it’s worth double-checking to see if your business is eligible for any other grants or payments not listed below.
NSW: If you’re a business, sole trader or not-for-profit organisation in NSW and you’ve been impacted by the recent COVID-19 restrictions, you may be eligible for a one-off grant of $7,500, $10,500 or $15,000. Apply here by September 13.
Victoria: There are several grants in Victoria for employing and non-employing businesses. The Small Business COVID Hardship Fund provides $10,000 grants for eligible SMEs that have experienced a reduction in turnover of at least 70%. Apply here by September 10. The Business Costs Assistance Program Round Two offers grants of $4800 to eligible businesses in specific industries. Apply here by August 20.
Queensland: Lockdown-impacted businesses in Queensland can apply to receive a grant ranging from $10,000 to $30,000, depending on the size of their annual payroll. Grants of $1,000 are also available for non-employing sole traders. Apply here by November 16.
Western Australia: The Small Business Lockdown Assistance Grant: Round Two provides $3000 cash flow support to small businesses in industry sectors most impacted by the recent circuit-breaker four-day lockdown and interim restrictions. Apply here by August 31.
South Australia: Small and medium-sized businesses forced to close as a result of the state’s lockdown (beginning 20 July 2021) may be eligible for a $3,000 emergency cash grant. Sole traders may be eligible for $1000. Apply here by October 17.
ACT: COVID-19 Business Support Grants will provide up to $10,000 for employing businesses and up to $4,000 for non-employing businesses that experienced a turnover decline of 30% or more as a result of the COVID-19 lockdown health restrictions. Find out more here.
For individuals
The federal government’s COVID-19 Disaster Payment is a lump sum payment to help workers unable to earn an income due to a COVID-19 state public health order.
This may involve a lockdown, hotspot or movement restrictions. How much you can get depends on your location and circumstances. It’s available to eligible ACT, NSW, QLD, SA and Victoria residents.
Debt Restructuring and Consolidation
Finally, you may be able to contact your lender and restructure your debt. The restructuring or consolidating of your debt may allow you to reduce your payments by consolidating all your debts into one repayment.
It is important that you do your research and discuss your situation with a mortgage broker or your lender, to know if this option is right for you.
Lenders
Each lender will have its own terms and conditions, as well as options for its clients. It is important to understand the offerings that each has to offer, in order to decide what option is best for your situation. Lenders like Bankwest, Commonwealth Bank, Macquarie Bank and AMP have financial hardship options always available. Other lenders like NAB, Westpac, ANZ, ING, St George and Suncorp have put into place COVID hardship support for those struggling during the lockdowns and the overarching pandemic.
You can check out what options are available to you by clicking the link attached to each lender. However, navigating what option is best for your situation can be hard, and ZENRG Finance is there to help during these uncertain times.
Need some help during COVID lockdowns?
Our mortgage brokers are available to help you. Enquire now.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.