Many are concerned about the financial and economic impact of Covid-19 will be on their own personal finances. Having said that, it’s important not to panic and make rushed decisions without being fully informed. Whilst things seem difficult now, please remember that this situation is only temporary. Your personal situation and the economy will recover and improve in the future!

Please remember, you are not alone!

Here at Rise High, we are here to help and guide you every step of the way. The Rise High Team will dedicate as many hours as necessary to ensuring we help you through this crisis. Getting Australians back on their feet is one of our main commitments.

Here are some things that you can consider to get some financial relief over this difficult time:

Understand your financial position

• If you are concerned that you may not be able to meet your financial obligations and make your loan repayments on time, be proactive and contact your lender to apply for a repayment holiday. During this repayment holiday you will still be charged interest and fees on your loan account. However you will not have to make repayments for 3-6 months. Before deciding if this is right for you check out this video where we explain the positives and negatives. When taking a holiday repayment, it’s important to understand if you will potentially lose money you have saved in your offset accounts or lose access to your available redraw. In this video, we discuss the issue further and outline how your savings may be impacted. By getting on the front foot and proactively seeking repayment relief and setting up payments plans before you miss a payment you may be able to save your credit history from being tarnished in the future. Reach out to us so we can help guide you to the relevant bank contact details and hardship application process.
• If you find that your income has reduced but not enough to meet the eligibility criteria and receive the Government relief options, then please read this blog to find out what other support is available to you.
• Review your budget and identify ways you can reduce your spending and increase your savings. Building a cash buffer will help you manage through this difficult financial time. This blog provides additional tips to get you through this period and come out the other end without having a financial hangover. However, if you need some assistance reviewing your budget we would be happy to help provide some guidance and support!
• If you have taken out Loan Protection Insurance with ALI at the time of arranging your home loan, and you have been made redundant or stood down for more than 30 days you may be entitled to claim under your redundancy cover. Click here to visit the ALI website to find out more and make a claim.

Small Things to Improve your Financial position in this Crisis

• Research current interest rates and complete a cost analysis of your individual circumstances. As we explain in this video and this blog, you might want to consider the financial benefits of breaking your fixed interest rate and re-fixing it to a lower rate or converting it to a variable rate. It is also important to consider converting your principal and interest repayments to interest only, read this blog where we discuss further.
• Explore whether you can refinance to save money and/or consolidate expensive debts to help reduce interest expense and save money! Be sure to get in touch with us so we can help you and also watch this video to find out more.
• If you still have the ability to make some repayment amount towards your home loan, it might be worth considering changing your repayments from principal and interest to interest only. Read this blog which explains further.
• Property investors should watch this video and ensure that your Landlord Insurance covers you in the case of rent default and loss of rent throughout this period.
• Any default in payment would add to your credit file. This could significantly impair your ability to obtain finance in the future. To learn about your credit rating might be impacted, read this blog.
• Beware of scams! We discuss what to look out for and provide further resources in this blog.
• Protect your investment portfolio
• If your tenant is not able to pay rent or you are concerned that this could be the case in the near future, we recommend you click here to read our blog for some tips.

Protect the value of your property

• As we explain in this video, it’s important to understand the potential impacts Covid-19 may have on the property market and the economy, and what you can do to protect and prepare you and your family!
• If you are considering purchasing a property during this time, please reach out to us to discuss your own financial situation. This video discusses the pros and cons, as well as the opportunities and risks, of purchasing a home or investment property during this crisis.
• If you are concerned about your financial position when purchasing a property during this time, this video explains that if you still meet the servicing requirements of the bank, then there is a good chance that a loan can get approved. It’s also still possible to complete bank paperwork during this time, watch this video to find out how!
• If you would like to learn more, make sure you check out these blog pages:
  • What does all this mean for the property market?
  • Will the Government Support Be Enough to Soften the Blow?

Explore Government relief

• It is important to understand the tax and financial implications the Government relief packages may pose. For more information take a read of this blog.
• If you are currently receiving JobSeeker Payment, Youth Allowance Jobseeker, Parenting Payment and Special Benefit, you will receive an additional $550 per fortnight for the next 6 months. For eligibility criteria click here.
• The Government is providing 2 separate $750 payments. This is to social security and other income support recipients and eligible concession card holders. To see if you or your family members are eligible click here.
• The Government is allowing individuals affected by the Coronavirus to access up to 20K from their Superannuation tax free. Please ensure you get financial advice before doing this. Watch our video here which explains why taking money out of your Superannuation when the share market is underperforming is likely to impact your retirement plans. This blog discusses the impact Covid-19 has had on the share market and superannuation. For more information on this Government support click here.
• Under the new measures, businesses and individuals paying land tax quarterly in 2019-20 will be able to defer payment of their remaining 2019-20 land tax payments for six months. For additional information click here.

Government Relief options

• You may also be eligible to receive some Government relief through the following initiatives:
  • cash relief for employers,
  • $10,000 emergency cash grants
  • tax incentives for business investment,
  • short term unsecured Government Backed business lending, and
  • JobKeeper allowance to keep more of your employees

Most importantly, it is essential to make a plan. This plan consists of what the coming months might look like for you and your family. Regardless of your situation, we are here to help you. Let’s work together to create a plan to help you and your family through this challenging time!   

If you want to know more about your options please leave your details below and we will be in touch.