Should I take a Mortgage Holiday? COVID-19
Homeowners and Mortgage Holders
Interest rates have come down to record lows following the Reserve Bank dropping the official cash rate to an all-time low of 0.25%. The Government and banks have also agreed to give impacted mortgage holders, a six-month payment holiday on both the interest and principal of their mortgages.
Be wary though, there is no such thing as a holiday. It's actually a deferment where the money will either be added to your outstanding balance or your mortgage term will be extended.
A better option could be for you to apply for a period of interest only payments on your mortgage. The benefit of this is the balance of your mortgage will still be the same as it is today at the end of the interest only period.
However for some, there may be no other option but to ask for a repayment holiday and we will be able to help you with that.