Preparing your home loan for the worst in the coronavirus crisis

The coronavirus crisis has already cost many people their jobs or sliced hours off their working week. But even if you’re one of the lucky ones who still has full employment, it’s a good idea to be prepared in case your circumstances change in this fast-moving crisis. Here are three things you can do now to prepare you home loan in case your financial circumstances change:

1 Build up a buffer

If you can afford it, make extra payments into your mortgage to build up a buffer in case things take a turn for the worse. Any extra cash you put into the mortgage can be used for your mortgage payments if need be and can help tide you over in tough times. You might be spending less by not going to restaurants or the cinema or on shopping trips, so you could put the extra cash into your loan.

2 Renegotiate your loan

Now is a good time to ask your lender to lower your loan interest rate. This could pay off in two ways. Firstly, your repayments are lower and secondly, the extra money you are saving on the repayments could be put towards building a bit of a buffer for the future. We suggest you talk to a UNO expert to see how they can help you renegotiate your loan.

3 Refinance

Refinancing your loan with another lender which is charging a lower interest rate is another effective strategy. As with renegotiating your loan, this will lower your repayments. And now is a good time to refinance. Lenders are offering generous cashbacks of anywhere up to $4000, which can certainly make a switch worthwhile. But if you’re thinking of refinancing, don’t wait too long as the current good deals might not last too long. Lenders’ policies are changing quite quickly as they adjust to the coronavirus crisis. They are currently reviewing their lending policies, including the borrower’s required income level and how much they will lend against each property. Some people are worried they won’t get access to the banks’ mortgage repayment holidays if they need it after they switch lenders. But UNO home loan broker Paul Sealey says changing banks doesn’t affect eligibility, even if someone has only been with their new lender for a week. By following these steps, you’ll be in better financial shape to help withstand any money pressures. And if your circumstances stay the same, as they hopefully will, you’ll still be better off. This information in this article is general only and does not take into account your individual circumstances. It should not be relied upon to make any financial decisions. UNO can’t make a recommendation until we complete an assessment of your requirements and objectives and your financial position. Interest rates, and other product information included in this article, are subject to change at any time at the complete discretion of each lender.Book a call in with UNO

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What our customers are saying

Gabe Windsor
October 26, 2023
What a fantastic experience using UNO Home Loans. Mike Parsons and the team were exceptional. Such an easy, hassle free experience, cannot recommend them highly enough. Mike Parsons was in touch every step of the way, and with him doing all the leg work, the transition to a refinanced home loan was a very easy one. Thank you!
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Laurisa Sticotti
July 1, 2023
Scott Wilkinson has been fantastic when dealing with my broking needs. He has held my hand through every step of the way and has made purchasing my first home a much more comfortable experience than I anticipated.
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Thusi Gamage
July 1, 2023
Awesome team, Very reliable and friendly. Scott Wilkinson is very experienced and knowledgeable.He guided us throughout the process and was available to help.
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Omar Zazou
June 1, 2023
I have worked with Scott Wilkinson to get my home loan and he has been a massive help to navigate my first home purchase. He has taken care of all the financial details and I didn't need to worry about anything. Highly recommend him for his professionalism, patience and support!
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Kelly O'Connor
June 1, 2023
You won’t find any broker better than Anita at UNO. We’ve told all our friends and family about her and will be using her for all our mortgages in the future! A stress free process from the start. She listened to our needs and was always available.
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Ashley Morson
We are truly grateful for uno home loans and our broker Karis Churchill. This is our second time purchasing a home with the help from Uno and both times have been a very positive experience. Our recent purchase had many obstacles due to different factors however it was our dream home and we were up for the challenge. Our broker Karis was a true support and went above and beyond. She communicated so well with our solicitor and the real estate agents. She kept us updated through every step and kept us motivated when things seemed impossible. Uno is very fortunate to have Karis as a broker and we would highly recommend her to anyone. Our family are so happy we are now in our new forever home. Thank you so much Karis and to the uno team!!!
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Ebubekir Demir
Thank you Eren for your quick and efficient turn around time to getting an approval for a loan. Will be recommending you to anyone that needs a quick and reliable loan.
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