• Darby Franklin


Here are the most common questions we are getting from you. Reach out to us if you want to discuss your options. Remember your lender recognises the impact COVID19 is having and is there to help. It’s important that you take the right steps now, so you are well placed for the future.

Will Pausing my loan affect my credit file?

No, deferring your repayments will not affect your credit file or Credit Score. However, if you do not defer your loan and are late on your repayment this will have an impact on your credit score. It’s important to get on the front foot and start communicating early with your lender. If you foresee having difficulties making repayments, then entering into an agreement as early as possible is the best approach.

What criteria will I need to qualify ?

Each bank has their own individual criteria. Generally, if your income is impacted in any way by the COVID19 pandemic then you will be eligible to defer your repayments.

Who should I contact to defer my payments

We supported you through your approval process and we are here to support you with any questions you have regarding deferring your repayments or restructuring your finances. Whilst we are happy to assist with any questions you may have, you will need to contact your lender directly should you wish to pause your loan repayments.

Will my payments increase after the Pause?

Depending on your lender your loan term may be increased so your repayments don't increase after your deferred repayments, otherwise your loan balance may be recalculated based on the remaining term. As an example, a loan of $500,000 would incur $15,000 in interest over a full 12 months at a rate of 3% - resulting in a loan amount of $515,000. For a remaining 24 year loan term this would increase your minimum repayments from $563 a week to $579.

In both cases Interest will be capitalised on to your loan amount.

Can I swap my loan to interest only?

Swapping your loan to interest only will require a full application and if your income has dropped you may not meet the criteria to change your loan to interest only. This process takes a few weeks or up to 6 weeks if you are changing lender in the process.

If you have some time and savings up your sleeve and are looking to reduce your repayments then this option might be for you, otherwise pausing your loan may be better suited.

Are the lenders still approving loans?

At this stage there has been no change to the criteria for qualifying for a loan. We expect there to be some more scrutiny around those industries which have been impacted most to ensure your income hasn’t been impacted.

We are standing by to support you and help you understand your options through these difficult times. If you are not already a customer feel free to reach out. We are happy to answer any questions you have, at no cost to you.

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