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The majority of mortgage brokers believe existing government support schemes are crucial in helping improve the financial circumstances of many Australian homeowners, according to the latest survey by MyState Bank.
Seven in 10 brokers said the JobKeeper and JobSeeker arrangements have been effective in supporting their customers amid the COVID-19 period. However, around one in five expressed worries about the changes in these support schemes in the coming months, saying these could negatively impact their client's finances.
The federal government recently announced a three-month extension of the JobSeeker payments, which were due to expire next month. The extension, however, will come with reduced support, with payments being cut from $250 to $150.
"It is clear from our latest survey that while Government support has been a lifeline for many customers, there may be some tough times in the coming months as the government support is wound back," said Tony MacRae, general manager for banking at MyState Bank.
MacRae said it is crucial for brokers to help their clients look for options as they try to recover from financial struggles. In fact, two-thirds of brokers said the financial outlook of their clients has slightly worsened since the onset of the COVID-19 outbreak.
"The stress, anxiety and financial pressures put onto Australians in this current period is unmatched in my 20 years in the industry. At this time, brokers are in one of the best positions to truly understand the current sentiment of Australian homeowners," he said.
Still, brokers remain optimistic about their clients, with more than a third saying they do not expect their customers who have taken a repayment holiday to have difficulties resuming payments.
