Frequently Asked COVID-19 Questions #2 – Loans and Credit Cards
What can I do with my Investment Loan or Credit Card?
We kick off our COVID-19 Lending FAQ series with one of the most asked questions on peoples minds at the moment.
Scomo has talked alot about people deferring their mortgage repayments on their home, but what if you have in investment property? An investment loan? What about a car loan or credit card?
So again, different lenders, different types of facilities, and different policies, which is why its important why you should reach out to us and talk to us so we can investigate and help step you through it and explain how it works to you.
If you have an investment property and an investment loan on that property, you can absolutely defer the repayments on that as well.
If your tenant is struggling to pay rent and you negotiated a deal with them, or you simply just won’t be getting any rent for the next little bit?
Well then you’re suffering a loss of income and that’s due to COVID-19.
If you’ve lost your job, and your property is negatively geared, sees you maybe putting $500 a month into your investment property, again, you’ve suffered a loss of income due to COVID-19, and you’re not going to be able to do that for the next couple of months.
So you can absolutely put your investment mortgage on hold as well.
Car loans and credit cards?
Same deal, you can also put them on hold. Car loans because they are generally a shorter term, we’re seeing those lenders extend the term by a further 6 months s that your repayments aren’t affected. But they’re certainly enabling you to defer it.
Credit cards are a little bit hit and miss between the lenders, not really a debt that they’re happy to negotiate on too much at this stage, however if you’re really struggling, they’ve gotta help you out!