COVID-19 LOAN HARDSHIP RELIEF PACKAGE
EFFECTIVE 23 MARCH 2020
APPLIES TO THE FOLLOWING LOAN TYPES:
Residential Home and Investment Loans
401 - Fixed Rate Home Loan
402 - Fixed Rate Investment Loan
416 - Investment Essentials Loan
417 - Investment Options Loan
418 - Investment Variable Loan
432 - Interest Only (Owner Occupied) Loan
437 - Interest Loan (Investment) Loan
480 - Variable Housing Loan
482 - Minimiser Home Loan
483 - Classic Home Loan
731 - Interest Only (Commercial) Loan
736 - Business Interest Fixed Loan
750 - Business SMSF Property Loan
755 - Business Residential Mortgage Loan
758 - Business Commercial Mortgage Loan
759 - Business - General Loan
- Applies to members who have an existing indebtedness with Coastline and who are current in terms of their repayments on their existing facilities (refer above loan types) as at 23 March 2020.
- Repayment relief by way of a pause (deferral) of principal and interest repayments for all the above-mentioned loans for 3 months (interest will be capitalised). ¹
- Where your loan is on a fixed rate the current fixed rate period will be extended by the deferred payment period at the current fixed rate. If a fixed rate is terminated during the deferral period then break fees and applicable loan charges will be payable.
- Waiver of all renegotiation/restructured loan fees.
- Interest deferred will be capitalised and fees will continue to be debited to the loan account. ¹
- Loan Redraw facility will be revoked during this period.
- The terms and conditions of the loan product will continue to apply, including any events of default as outlined in the contract.
- Following 3 months the members financial position will be reviewed for possible extension of the hardship requirement for by way of a further 3 months loan repayment deferral period.
- On completion of the hardship period the loan account will be expected to be brought up to date by either: -
- Extending the term of the loan repayment to account for the interest incurred during the deferral period and keep the level of repayments following the deferral the same; or
- Increasing the level of the loan repayments to account for the interest incurred during the deferral period but keep the term of the loan repayment the same as if the deferral had not occurred.
OTHER OPTIONS AVAILABLE FOR FINANCIAL RELIEF
Besides our COVID-19 Loan Relief Package outlined above there are several other loan options available to borrowers to help with hardship. These options being:
- Access of any redraw available on the loan.
- Convert to Interest Only (IO) for a maximum 6 months.
- Renegotiate to a lower loan repayment by recalculating the loan repayment over the original term of the loan (i.e. In some instances when the loan was originally taken out the repayment was calculated on a higher interest rate. With rate reductions you may now be paying more than required to repay the loan over the original loan term.)
- Restructure of the loan over the maximum loan product term (e.g. loan originally taken over 20 years, can extend term a further 10 years to reduce repayment level).
- Consolidation of loans to reduce repayment level.
It is recommended you consider your personal circumstances and all options available to you before you enter into a hardship arrangement. Should you wish to discuss your financial position or other options available please contact one of our lending specialists.
¹ Interest Capitalisation is the addition of unpaid interest to the outstanding loan balance. The outstanding loan balance increases when payments are postponed during periods of deferment or forbearance and unpaid interest is capitalised.
AUSTRALIAN GOVERNMENT ASSISSTANCE
The Australian Government has announced assistance packages for people who have been impacted by the COVID-19 pandemic. Please visit the following website link for more information.
Frequently Asked Questions?
I am worried about making my regular loan repayments – what options are available to me?
If you are ahead on your repayments, you may want to consider accessing your redraw balance first.
If you are currently paying more than the minimum repayment amount, you have the option to reduce your repayments to the minimum.
If these options are not suitable, you can contact a Coastline Loan Specialist who will consider your position and discuss all the options available to you or seek assistance through the Coastline COVID-19 Loan Hardship Relief Package.
What is the Coastline COVID-19 Loan Hardship Relief Package?
If you are financially impacted by the COVID-19 virus, Coastline may consider to place your home or business loan repayments on pause for up 3 months. After 3 months Coastline will contact you to reassess your financial position at that time.
When will the Coastline COVID-19 Loan Hardship Relief Package be available?
Assistance under this package will be available from Monday 23 March 2020.
How do I access financial hardship with Coastline?
Financial hardship assistance can be accessed by:
- Contacting a Coastline Lending Specialist direct; or
- By submitting a request through our dedicated COVID-19 Loan Hardship Relief Package dedicated site.
How are my repayments treated during the COVID-19 relief period?
If you are eligible, we will put the repayments on your home loan on hold for a period of up to three months. This means that you’re not required to make any repayments on your loan during the relief period.
Note that during the assistance period interest, fees and charges will continue to accrue and will be added to the outstanding balance of your loan. This means your loan balance will increase and if you take up this assistance, you may end up paying more interest over the life of your loan.
What happens to my loan after three months?
After the three months relief period a Coastline Loan Specialist will contact you to discuss your financial circumstances at that time. If there has been no change then you may be granted further relief by way of a further 3 months extension of loan deferral.
Should your financial position have improved then the Coastline Loan Specialist will discuss the options available for you to catch up on the missed loan repayments.
What are my options at the end of the relief period?
At the end of the relief period your loan repayments will recommence. You will have two options to catch up on the paused repayments:
- You can keep your original loan term and your repayments will be adjusted to ensure you pay your loan off over the original loan term, or
- Your loan term can be extended by a period equal to the duration of the assistance provided and your repayments will be adjusted accordingly.
What should I do if I cannot meet my loan repayments after the relief period has expired?
If you are concerned you will not be able to meet your loan repayments following expiry of the relief period, you will need to contact a Coastline Loan Specialist who will discuss your ongoing financial position and needs.
Does the Coastline Loan Relief Package cover my personal loan and credit card?
No, the Coastline COVID-19 Loan Hardship Relief Package only applies to specific home, investment and business loans. Should your current loan not be covered by this relief package you can discuss your financial circumstances with a Coastline Lending Specialist who will advise you of your options or submit an application for Financial Hardship.