An aggregator group has launched a new client assistance calculator to help brokers communicate the options available to customers facing changed circumstances due to the current pandemic.
AFG’s COVID-19 Action Plan Calculator was developed to equip brokers to have “more informed discussions".
“Lenders are offering support to mortgage holders if they have suffered a loss of income due to COVID-19, however our brokers are telling us their clients need help to understand what changing the structure of their loan to arrangements, like interest only or hardship, and what those alterations to their loan structure will mean long term,” explained AFG head of sales and distribution Chris Slater.
“The calculator enables a broker to demonstrate a clear picture to their clients of how their loan will look both now and into the future based on a variety of options available from the lender.”
The tool helps predict the potential impact any action could have on the loan balance, maturity date and monthly repayments.
It can compute scenarios including paying the minimum loan repayment on a loan, moving to interest only repayments, changing the monthly loan amount to a preferred amount, and pausing repayments completely for a period and what will happen when repayments start again.
Brokers can save the calculator’s determination as a PDF and then email or share the results via video call with their customer.
“The relationship between a broker and their customer continues to be strong,” said Slater.
“At times like this, the broker’s ability to work with their customer and their understanding of lenders and the available options, are just as important as the assistance the broker provides a customer when considering a home loan choice.
“We encourage all mortgage holders affected by a loss of income due to COVID-19 to start the conversation with their broker and lender as soon as possible to find their way through the current situation.”
