We are here to chat "virtually"
Worried about your home ownership goals?
Things are moving fast in this new COVID-world so we want to assure you that The Team at The Mortgage Girls are here to chat.
Banks, governments and advisers like us appreciate that this is a once-in-a-lifetime event and everyone is jumping in to do their bit.
As New Zealand moved to alert level 4 for coronavirus most businesses revenue will be taking a hit. In response, the Government has announced a series of multibillion-dollar support measures for business and households.
So, let’s break down how the current political and financial climate may impact you - and how The Mortgage Girls can help.
Homeowners and Mortgage Holders
Interest rates have come down to record lows following the Reserve Bank dropping the official cash rate to an all-time low of 0.25%. The Government and banks have also agreed to give impacted mortgage holders, a six-month deferred mortgage repayment holiday on both the interest and principal of their mortgages.
Be wary though, there is no such thing as a mortgage holiday. It's actually a deferment where the money will either be added to your outstanding balance or your mortgage term will be extended. This needs to be used only as a last resort.
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 provide you with the links and contacts in order to apply for this.
Try to remain calm, the Government and banks are working together on this initiative and it takes some time to set up and all the details have not been released yet.
In the meantime the banks 0800 numbers are open and available (albeit “clogged”)
(click here for the mainstream banks 0800 #’s) to try & assist, but if you can, just “take a breath” and let the systems be put in place so we can assist and we will be in touch ASAP. Also remember that your internet banking messenger system can also be utilised to get in contact with them rather then their phones.
We have listed below the different bank’s links to their specific covid-19 webpage.
For other lenders please email us and we can help with this information.
If you were about to buy a property
The Mortgage Girls are working 100% digitally from home and able to continue to help you with your application and discuss your options moving forward. We are continuing to help new and existing clients with their current and future goals.
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 however, the lock down proposes challenges around open homes and auctions and also access to professionals such as solicitors. I can help you navigate these disruptions to still get an outcome.
Impacted businesses can access a wage subsidy of $585 a week per full-time employee and $350 a week per part-time employee for up to 12 weeks at a cost of up to $9.1 billion.
To qualify businesses, need to commit to continue to employ staff and pay them 80% of their current wage, show they have suffered or project to suffer a 30% or more reduction in revenues and have taken steps to mitigate the impact of COVID-19 on their business.
The initial $150,000 cap was removed which means basically every impacted business will be covered enabling them to support their workers.
The Government has announced $2.8 billion in business tax changes to free up cashflow, including a provisional tax threshold lift, the reinstatement of building depreciation and writing off interest on the late payment of tax.
Aviation support package:
600 million dollars targeted to support the aviation sector.
The Wage Subsidy Scheme:
The Government has made modifications to the wage subsidy scheme to ensure people don’t lose their jobs during the national lockdown.
These changes will soften the impact of COVID-19 on workers, families and businesses, and position them to exit the lockdown and look to recovery.
Please speak to your accountant about this, link here
If you’ve lost your job or are a business faced with laying off your employees, there may be support options available to you.
Work and Income offer a range of information and support to employees who are being made redundant.
Find out more on the Work and Income website(external link)
There is also information for employers who are considering redundancies.
Read details on the Work and Income website(external link)
The Business Finance Guarantee Scheme:
A 6.1 billion dollar scheme allowing qualifying businesses to borrow up to $500,000 for a maximum of 3 years. Banks will be expected to provide these loans at competitive rates. The Government will carry 80% of the credit risk, with the other 20% to be carried by the bank.
You have a remote-ready expert on your side
Questions? Plans? Call us 0800 864 864, email us or simply hit apply today on our website here. We are 100% digitally enabled, so every part of the process can be done online and over phone, without a face-to-face appointment.
Find out how to look after your mental health and wellbeing when you have to stay at home