Thousands of Australian homeowners granted payment deferments on their mortgages at the height of the COVID-19 pandemic have a tough choice to make in the coming weeks.
Those six-month payment deferments will start expiring in September, and while another payment holiday is on offer for up to four months, taking it could be a really bad idea.
“You’re not avoiding any of the interest on the loans,” says financial advisor Corey Wastle, the founder of Verse Wealth in Melbourne. “You’ll need to catch up on the deferment on the course of the loan. It’s only a strategy that someone should think about when they’re struggling to meet their short-term needs.”