Staying on track to home ownership

If you are nearing settlement or just starting to consider applying for finance, you’ll be happy to know you can still keep moving forward with everything without having to leave your house.

We have temporarily been forced to adapt the way we live our everyday lives due to COVID-19, but that doesn’t mean everything needs to go on hold. Your dream of home ownership is still possible. We’ve listed some of the top questions that are being asked in this rapidly changing environment.

Will my finance be approved in the current market?

Banks and your Resolve mortgage broker are still open for business. Your application will continue as planned if you have had no changes to your financial situation or employment over the past few weeks. For those who have had a change to their employment status, such as those who have been stood down, been asked to take unpaid leave or had their shifts reduced, there is an obligation to notify the lender. This is in place to protect you and allows the lender to re-evaluate the deal based on your updated employment scenario. This is in place so that we don’t proceed with finance that may put you in future financial hardship and includes those deals that are formally approved but not settled.

What if my employment changes during a build?

Celebration Homes and Resolve Finance will always support you to try and find a solution to any short-term changes in circumstances you may be experiencing.

New hardship provision to support Australian homeowners during COVID-19

Once your build is under way, and right through to when you’re living in your new home, if your employment changes because of this pandemic, you do have several options. The government has announced they will support Australians who are unable to pay their mortgage through new hardship measures. Lenders can choose to support customers in a range of ways such as:

• Extending the loan term (to reduce payments).
• Reducing payments.
• Repayment holidays of up to 6 months.
• Restructuring debt.
• Or a combination of the above.

This is a regulatory requirement so customers can have confidence that they’ll be dealt with fairly and with empathy by Lenders.

Insurance has never been more important

For new home buyers, it pays to look at loan protection insurance. It provides peace of mind by providing financial support during a range of unexpected situations like:

• Involuntary unemployment.
• Serious illness.
• Death or terminal illness.
• Accidental injury.

Resolve Finance’s insurance supplier ALIGroup will payout during COVID-19 events.

Government assistance during COVID-19

The government has announced a range of assistance options for people impacted by COVID-19 which can provide some reassurance to homeowners.

• New Jobseeker payments from Centrelink: COVID-19 supplement of $550 per fortnight paid in addition to Jobseeker payments, for up to six months.
• New JobKeeper Payment: Businesses will be able to access a subsidy from the Government to continue paying their employees. Employees who have been stood down without pay can potentially receive $1,500 per fortnight for up to six months.
• Access to superannuation: Those in financial stress can access up to $10,000 per annum from their superannuation for the next two years.
• Small business owners: Those who employ staff and have an annual turnover of less than $50 million can receive a payment equal to 100% of their salary and wages withheld, from 28 April 2020. Payments will be between $10,000 – $50,000.
• 2 x Government stimulus payments: Two payments of $750 each will be paid to social security, veteran and other income support recipients (including family tax recipients) and eligible concession card holders. This will happen on 31 March and 13 July.

Full details can be found here.

Key questions people ask:

1. Would a Death Benefit be payable if it’s a COVID-19 related death? The answer is YES, subject to the terms and conditions of the policy.

2. Would a Living Benefit be payable if it’s a COVID-19 related trauma event? The answer is YES, subject to the terms and conditions of the policy.

3. Would an Involuntary Unemployment Benefit be payable if it’s an involuntary job loss associated with COVID-19? The answer is YES, subject to the terms and conditions of the policy.

In short, there are no exclusions specifically due to COVID-19. For further information, visit Protecting Home & Property Buyers.

Our commitment to exceptional customer service remains unchanged, so please do not hesitate to talk to one of our sales consultants about finding your dream home. ’ If you have any specific questions or concerns about finance, you can contact Resolve.

Article written and supplied by Resolve Finance.