Update on lending conditions

Hello Everyone it’s Callum here From My Mortgage
Freedom, Just thought I would give a quick update on the three main topics that I’m seeing
at the moment from most of our clients. Obviously we have all seen the deferred repayment
arrangements that banks are offering so that will be one part of the video series, the
other I wanted to chat to you about is this new scheme the government is proposing for
up to $250,000 of unsecured lending for business owners, so we will have a chat about that
as well. And today I’m just to cover off a general update
on what banks are doing with new applications at the moment and some of the issues we are
seeing come to light with what’s going on. So guys just on the general side of things,
obviously it’s really tough out there I just wanted to update you on what different banks
attitude are towards some industries at the moment. So, if you are in the hospitality industry
at the moment as a small business owner or even as an employee just beware we have had
some lenders decline applications or substantially reduce incomes, purley because the person
operates in that industry, even if profitability was there before , so just be weary. Just also wanted to talk to you about the
timelines you can expect, so it’s really difficult to know how long different banks are going
to take to assess things at the moment, we have had some lenders sending home all or
some of their credit staff at different times. We’ve had one lender announce that their settlement
teams are going home, so it’s really important to be having conversations with your banks
or a broker about how long you can expect things to take, Its very uncertain at the moment,
so just make it known to yourself that it’s going to take a lot longer them what you would
expect to get an outcome at the moment. Lenders are also going to be querying really
heavily if you are looking to increase your existing lending for cash out purposes, what
you are looking to do with it, whether they they are concerned about your employment,
so just beware there is going to be a whole lot of additional scrutiny at the moment,
whether you are are business owner, especially a business owner or even an employee of particular
different parts of the industry , because we have all known people that have been laid off, or had their
hours reduced and you can be sure that the lenders are going to start to ask the same
question when assessing your applications. Another thing that is worth checking out as
well if you are looking at refinancing, we are going to talk about the repayment holiday
scheme tomorrow, but what we have found with some lenders that there not offerening the
deferred repayment scheme on home loans if you are a new client or if you have just refinanced
across, so please make sure you are having conversations with your bank or your broker
around this. If you are looking to refinance. We have just got to stick together guys and
hold strong it going to be a couple of months obviously, but I will give you guys some further
updates on the other things that I mentioned tomorrow and the day after. Chat soon!

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