Time is money in lockdown
With #stayingathome becoming the new normal, people have been ticking off their ‘to-do’ list, including finding better finance rates.
There are pros to #COVID-19 restrictions, including no painful morning and afternoon commutes.
But there are also cons: no weekends with mates down at Lorne, no footy, or clocking off with a Friday Pinot overlooking the bay.
But it’s given us all time each day to tackle our ‘life-admin’ and clean up our finances. This is critically important when so many have lost jobs or had their hours of work reduced because of the coronavirus.
In normal times, 70% of Loan Market Geelong's customers would be requesting home or investment finance, with the other 30% wanting refinancing or debt consolidations during any given month.
But in April, that trend reversed.
It took a couple of weeks for people to adjust to working from home – getting down to Officeworks for a proper home office set-up, sorting out Zoom calls – but from April 1, most got into the #WFH groove.
And once that happened, many started to find out they had more time in the day.
We have one customer who leads a very busy life. We’ve been in touch with them a few times to offer our services to help them get their unsecured personal loan down from 16.99%. They just couldn't find the time before Victoria’s Stage 3 lockdown.
But in April, they had the time to log on to our video conferences and get the ball rolling. We shopped around and refinanced them to a new personal rate of 7.64%. Their monthly repayments have now halved, going from $516 to $246. That’s a saving of more than $3000 a year! Now that’s a productive use of time in lockdown.
Interestingly, we’ve had very few requests for the six-month mortgage repayment pauses being offered by the major banks. Customers believe there’s greater benefit in reining-in their personal debts and current product repayments rather than seeking a mortgage repayment deferral (remember, it’s a deferral, not a ‘holiday, and interest will still accrue over the period).
The Victorian Government will review current Stage 3 restrictions on May 11. While we all want to #flattenthecurve, keep our communities safe - and enjoy a Friday Pinot with friends - we’ll miss the extra time we’ve currently been gifted when lockdown ends.
If you’re looking to come out of lockdown financially leaner, get in touch with us today so we can help.
Lockdown has really proven time is money.