How Will The Corona Virus Affect My Access To Finance
With the world turning into the scenes from an apocalyptic movie, and toilet paper shares becoming the new safe-haven for investors, I thought it would be prudent to do a blog on how the virus may affect borrowers’ access to credit.
Many of your bigger Banks in Australia have already started sending staff home to work remotely in an effort to “flatten the curve” as the new coined phrase states. The NAB office in Sydney had to recently close for a little while as they had a confirmed case of the Corona virus in there main building too. What this all means for borrowers is that, in the near future, while lenders are running skeleton crews, to actually physically handle documents, we may experience a few delays or extended wait times with regards to document processing.
The good thing about this day and age is that most of what needs to be done to process your finance can be handled by employees remotely. Once an application is in, it can pretty much be taken all the way through to final documents being produced, and after that settlement, remotely. With Australian lenders being pretty robust and adaptable, in my experience, they will probably get any extended wait times nipped in the bud pretty soon, too, as they find practical workarounds for the current situation.
One of the main issues that would present a problem is face to face ID’ing of clients and the face to face interview. These measures are required for anti-money laundering and counter-terrorism laws we have. Another issue that surfaces is once you have your financing approved, the final documents need an ink-on-paper signature, and these physically need to go back to the lender.
Fortunately, many lenders are adapting very quickly to the current situation, and have changed the way that they process these requirements. Banks and Lenders have changed the policy for the time being that enables brokers to conduct interviews and IDclient’s via specific apps. This allows us not to put ourselves or your family at risk.
You can still have a chat with your trusted mortgage broker, Castle Mortgages, from the comfort of your armchair, but also do your bit to “flatten the curve.” Many lenders have also adopted the electronic signing of final loan documents, meaning you receive your loan into your inbox where you can go through it at your leisure, electronically sign and return it. Even with paper documents, apps such as Zoom or Skype, with your friendly broker can help to work through the paperwork without physically having to be there. Failing that Castle Mortgages are Mortgage Brokers in Adelaide serving the wider Adelaide community. If needed, we will come out, fully sanitized from head to toe, and sign up that final bit of paperwork at a convenient time, in the comfort of your home.
Even though I am sure we will be experiencing a dip in demand, and the economy, it may be a good time to check that your interest rates are as low as they can be. It is one of the easiest ways to save money. If you were worried at this time that you may be restricted in the access to finance, or extra funds, I am just letting you know that it is still possible. If you would like to have a chat with us about your specific scenario, get in touch.
Please note this is a personal blog and is in no way intended as advice, the blog and topic are general in nature, and you should seek advice to your specific situation, from an industry professional. If it is finance structuring and set up, a mortgage broker(like Castle Mortgages), or financial advise an accountant or financial adviser. If you do not have either of these, we would be happy to point you in the direction of a good one.