How to manage your investment property loan through the coronavirus crisis

The owners of investment homes and apartments are potentially facing a double whammy from the coronavirus crisis. Not only are their tenants possibly facing hardship, affecting their ability to meet rent payments, investors’ themselves may face income declines thanks to the crisis.

The owners of investment homes and apartments are potentially facing a double whammy from the coronavirus crisis. Not only are their tenants possibly facing hardship, affecting their ability to meet rent payments, investors’ themselves may face income declines thanks to the crisis.

Even so, there are several strategies you can explore to help you meet your investment loan commitments. Below is some of the advice our expert brokers have been sharing with UNO Home Loan customers.

Talk to your tenant

As a starting point, you can talk to your tenant if they tell you they are struggling to pay the rent or have stopped paying. A lower rent is better than no rent at all, so it makes sense to negotiate with your tenant about what they might be able to pay, particularly if they have been a good tenant who always pays their rent on time in the past.

Renegotiate a lower interest rate

UNO mortgage broker Amanda Denham suggests asking your existing lender for a cheaper rate, which might make all the difference in helping you stay on top of repayments. If your home loan comparison rate doesn’t start with a 2, you may be able to get a better deal.

It’s also a good idea to find out if other lenders are offering better deals or other offers. Many lenders are currently offering generous cashbacks and in combination with a lower interest rate, this might just be enough to help you meet the loan costs for the next few months.

Switching to interest-only payments

Another possibility is switching to interest-only payments. While the rates on interest-only loans may be higher than principal and interest loans, your repayments are likely to be lower as you will not be paying off the loan balance or principal. However, at the end of the interest-only period your repayments will increase further to catch up the principal payments that were not made during this period. It will also mean that you will pay more interest over the term of the loan.

Everyone’s situation will be different, so it’s a good idea to discuss your next step with a mortgage broker that understands your situation and can calculate the impact of different strategies and help with negotiations with lenders.

Use your redraw

If you have been making extra payments on your loan, you might have funds available in a redraw facility, which you can access to help you keep meeting loan payments.

Another possibility is to see if you have borrowing capacity and equity in a different property – perhaps your home or another investment property – and use the redraw on that property instead.

Taking a Mortgage Holiday

As a last resort, banks are offering mortgage holidays on investment property loans as well as owner occupier home loans. But a mortgage holiday isn’t free money – any repayments you miss are added on to your loan. It means you might end up owing more on the loan when the crisis has passed, so it’s a strategy we suggest you analyse carefully. Read more about getting a mortgage holiday from your bank HERE.

Finally, keep an eye on the news and find out if your state government is offering any financial assistance for residential property landlords. The Queensland government, for instance, is offering relief on land tax.

If you ask your mortgage broker for advice and discuss whether these strategies are right for you, you’ll have a much better chance of getting through the coronavirus crisis without missing any loan payments.

You can reach us by booking in a quick call with our customer care team or by email on customer.care@uno.com.au

This information in this article is general only and does not take into account your individual circumstances. It should not be relied upon to make any financial decisions. UNO can’t make a recommendation until we complete an assessment of your requirements and objectives and your financial position. Interest rates, and other product information included in this article, are subject to change at any time at the complete discretion of each lender.



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John Cahill
March 7, 2024
Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
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Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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Rod
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
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Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
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Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
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Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
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Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
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Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
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Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
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Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
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Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
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