COVID-19 Update: What Financial Support Is Available

Posted on: April 29th, 2020

This page will be regularly updated as necessary.

 

 

Following the announcement by the Government in response to the COVID-19 pandemic, Max Loans is adapting rapidly to ensure we’re able to support Kiwis during this unprecedented period. We are all set up to work remotely and will continue to deliver our professional services during the lockdown within normal operating hours. We understand that the Coronavirus outbreak has posed great financial challenges for many people and businesses in New Zealand, and we are ready to help. We want you to know that the entire Max Loans team is behind you, and we will continue to do everything in our power to help you, your family and your business, just like what we’ve done since 2012.

 

At Max Loans, we are in touch with lenders every day across our extensive panel, so we know exactly how the financial industry is adapting to deal with the challenges that COVID-19 has brought and what lending is on offer. If you are impacted by COVID-19 financially, we’re here to work with you to determine the best financial solution to assist you, so you can focus on the safety and wellbeing of you and your family. Here’s how we’re making sure you’re supported during this tough time:

 

 

If you need a personal loan to meet your financial needs

 

If you are looking at personal loans to help you through this period, we would be happy to help you find a competitive loan to fulfil your needs. We understand that the last thing you want to do is wait around for an answer when you need quick access to funds to tackle financial demands, so we make the process as fast and easy as possible. In addition, our system allows you to do everything online without visiting an office, giving you peace of mind during the lockdown. To apply for a loan, simply fill out our online application form, and one of our experienced Account Managers will be in touch shortly.

 

For our existing customers who are struggling, we may also be able to get you a top-up on your existing loan facility to help you through this time.  Please email us or give us a call on 0508 629 5626 to discuss this further.

 

 

If you are struggling to meet repayments on your personal loan

 

We understand that Coronavirus could affect your repayment capacity, due to sickness, a reduction in working hours, or a loss of employment. Very few personal loan companies are offering support, but they are working through situations case by case.  However, a few personal loan firms do offer some relief, by for example allowing customers to apply for deferred or reduced repayments on personal loans for up to 3 months if their income has been impacted by COVID-19. If you’re struggling to meet your loan obligations, please email us or give us a call on 0508 629 5626 – together we can discuss the options available to you and ways that we can support you through this difficult time.

 

 

If you need help with your existing mortgage

 

We are receiving regular updates from banks and specialist mortgage lenders on what financial hardship support is available. Lenders have a range of tools and resources that they can use to help homeowners who are financially impacted by COVID-19. These may include the following options:

 

 

A SHORT-TERM ‘MORTGAGE REPAYMENT HOLIDAY’ 

 

The Reserve Bank of New Zealand (RBNZ) is allowing banks to offer a 6-month ‘mortgage repayment holiday’, which means customers affected by the coronavirus pandemic can pause their repayments for up to 6 months.

 

While mortgage repayment deferrals may give some short-term relief to those affected by Covid-19, a key thing to be aware of is that the interest continues to accrue and will be added on to your mortgage balance. Which means you will have more to pay back on your mortgage in the long term. So, think carefully about whether it is right for you before making any decision.

 

The good news is that a repayment holiday during COVID-19 will not affect your credit score. New Zealand Bankers’ Association CEO, Roger Beaumont, said: “ anyone who has deferred their mortgage repayments for up to six months because they are financially impacted by COVID-19 will not have their credit rating affected as a result of the deferral, provided they were not in arrears before the pandemic”.

 

Depending on the bank/finance company, we can either help directly, or alternatively, you will need to go to your bank direct – but either way we are more than happy to advise and guide if needed.

 

 

SWITCHING YOUR LOAN TO INTEREST ONLY FOR A PERIOD 

 

Most banks are offering the option to put your home loan onto interest only for a period.  Because homeowners will not need to pay the principal, their regular repayments will reduce, which may help free up funds for them to cover day-to-day expenses.

 

 

TAKING ADVANTAGE OF LOWER INTEREST RATES 

 

To support the economy against the impact of the COVID-19 pandemic, the Reserve Bank has slashed the Official Cash Rate (OCR) to a record low of 0.25 per cent and most banks have announced that they would pass on the full official cash rate cut to customers. Therefore, even if you are fortunate to be able to continue to remain in stable income, now is a good time to consider whether there is an opportunity to lower your current interest costs on your mortgage. To find how we might be able to help, please contact us to arrange a free, no-obligation chat.

 

 

OTHER FINANCIAL SUPPORT OPTIONS 

 

There are other financial support options available, such as extending the loan term and changing repayment frequencies to fit better with your income flows. If you’d like to discuss any mortgage related questions or concerns, talk to us about how we can help you make the decision that’s right for you.

 

 

If you need support for your business

 

If your business is impacted by COVID-19, we may be able to source a Business Loan to help you access the funds for development and cash flow support. Please complete the online form to help us understand more about your business, and we will get back to you as soon as we can.

 

 

If you want to look at lowering your insurance costs

 

Taking advantage of times like this by reassessing your budget to look for opportunities to cut back on expenses is a great way to try and get something positive from the experience.  Our insurance arm, Max Insurances is helping customers through this period by assessing customers insurance policies to see whether there are opportunities to lower their overall premium while continuing to protect the things that matter.  If you would like to learn more about this offering, please visit Max Insurances to learn more.

 

 

Contact us 

 

If you have any questions or concerns, please reach out to us. stay safe and stay in touch. Together, we’ll work through this challenging time.

Max Loans Team is working from home to help customers secure loans NZ wide during the lockdown

Find out what you can get using our handy loan calculator