Deferring mortgage payments due to COVID-19

I assume there would still be a 'record' if applying via the same bank in the future though @Terry_w? Wondering if they would issue a 'please explain'. Obviously it would show up digging through statements.

 

Yes it certainly will be recorded

 

CBA
"Will the deferral impact my customer's credit rating?
No. The deferral of repayments is under compassionate assistance, and will not be reported to the credit reporting bodies."

 

Thanks @Brady. Looking at impacts if you were to say buy or refinance in 6-12 months time.

 

Can't guarantee anything in the future, but would be extremely surprised if all went back to normal, loan term extended, back to working, loan services that there is an issue.
Put it this way I've done it for 1 of my loans, tenants job impacted likely lower rent.
If this was an issue later on for me, there will be a lot of noise.

 

What happened before all this was lenders looked at only the last 3 to 6 months conduct when refinancing. So missed payments before this didn't matter as long as not a default on the credit report.

 

CBA knows/looks at more than just 3-6months if it's an existing/closed CBA facility, system automatically does it which can pick-up further risks outside of actually policy (being 3-6 months pending facility).

But in saying that I still believe if it's just deferred and then no other issues, I would be very disappointed if they built in corona deferrals into the 'system' as an issue.

 

Unlikely our employment will be impacted. Tenants though? Unsure. Waiting to see.

Had considered (if cashflow from IPs remain) trying my luck at an extension and parking the funds in an offset. Current cash buffers are a little low for my liking.

Concern was impact if I were to say refinance early next year.

 

Thats not the intention. Its offensive really given the Commonwealth are assisting banks to fund these hardship cases. You could also take jobseeker from Centrelink and repay that later too I suppose.

 

Whilst in some ways I agree I am trying to look at it in every angle. How does this differ entirely from a refinance seeing as though banks are capitalizing interest?

 

Has anybody done this yet for a resi loan? I'd be interested to know the experience, what level of documentation requested, etc.

I'll certainly look to do it if tenants stop paying rent, even if on paper we can probably just keep up enough cashflow without burning savings.

 

Dear Y Man,
As an experienced skipper and well educated member of the property and financial industry I am curious what your thoughts are of all banks keeping in line with federal and international fractional reserve banking legislation of having a minimum of 10% reserves to loan books. No doubt as the wolves come to the door 100's of thousands or perhaps millions in just Australia will dip into savings and super.
I'm not envisioning a credit default sham such as GFC or Great Depression bank run and Soros getting imprisoned for fraud and the big wigs make flight to their deserted islands with a ship load of ex SAS, US marines and Gurkhas as securtity and the economy goes rudder less into another GD.
Surely, even you as a very experienced salty capitan must be gripping the helm a little nervously as we enter these unchartered choppy waters.

 

It's called the ugly carrot.
Very tempting but with deflation set to be around for awhile and interest rates to be close to zero for quite some time they will be maximising their profit from your hard work and capital.
Refuse if you can.

 

Nice to hear your refreshing honesty Y-Man.
You don't have to get in to nitty gritties but surely bank dividends are not a significant portion of your passive retirement income or for that matter anyone retired?!!

 

As in pretty well every scenario whatever the infinite possibilities, humanity and society is structured in the 21st century the bank wins every time. They cannot lose, every human or business is below them..
If my business, your or any other goes bankrupt we default and have an x for 5 years( maybe wrong?) and any assets and capital goes to the banks as priority any scraps left over go to the lucky businesses to share.
They take risk, over leverage etc and the government bails them out.
At least with this one the government is bailing out small and medium businesses. I am very keen to know where all this stimulus money is coming from and if it means a life time of debt for our nation and its citizens.

 

This is not adequate provision and she could have challenged his will or made a family provision claim. She might still be able to do something actually. Perhaps legal advice is worth a shot.