Brenton Ashbridge

Brenton Ashbridge

Brenton is a Senior Lending Specialist and Director of Finspective. Read More about Brenton

April 30, 2020

Why you should take action now

In this crazy world, you might be a little bit anxious about your money. Now is the time to take action, get in control and pick easy wins where you can.

As we try to stay positive about the long-term, easy tasks like making sure you’re not paying too much on your mortgage, can go a long way to reducing financial stress.  It’s incredible how much money people are wasting by paying additional interest on their home loans.  This money can be put to much better use.


Australian banks have acted differently since Coronavirus started impacting the economy. Some have reduced their interest rates significantly to attract owner-occupiers; others changed their policies to exclude particular segments of borrowers. Also, there are new fixed interest rate offers among the lowest Australia has ever seen.

As a result, it is more important than ever to find the right lender for you.  If you haven’t spoken to a home loan specialist for two or more years, you could be paying thirty per cent more loan interest to your lender; money that you could use for yourself.

Here are three lending strategies to consider:

Refinance to reduce your interest rate

Interest rates were dropping sharply for over two years before COVID-19.  Since then, there have been more decreases in interest rates, which banks can pass on to individuals and businesses.  Whether you choose interest rates that are variable, fixed or a combination of both, you’ll likely have more money to allocate to other areas.

Switch to Interest Only

Switching a portion of your loan to Interest Only can provide a short-term reduction in your monthly repayments to ease the strain on your budget.  This strategy is helpful if you need to focus your cash flow elsewhere.

Defer repayments for six months

A new measure created since the COVID-19 pandemic started, potentially allowing borrowers to stop repayments for six months. However, at the end of 6 months, your new repayments are likely to be higher, and you’ll owe your lender more money.


In times of crisis, cash is king.  By reviewing your loan strategy and your loan provider, you may be able to reduce your home loan repayments by more than thirty per cent.  A successful review should result in more money in your pocket without increasing your loan in the short-term.

These savings can be better used to make sure you can keep your home, pay the bills, retain your super and inevitably own your home sooner.


Time could be of the essence in the current climate.  A full loan process should be completed before any changes occur, either to your personal situation or bank policy.

Given banks are expected to become slower and policy harder to navigate, a home loan expert will assist you with the research and manage the application process on your behalf.


The information (including taxation) is general in nature and may not be relevant to your individual circumstances. You should refrain from doing anything in reliance on this information without first obtaining suitable professional advice.

You should obtain and consider the relevant Product Disclosure Statement (PDS) before making any decision to acquire a product.

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