As several states go into lockdown and have other restrictions imposed due to the escalation of the COVID-19 outbreak currently sweeping the country, we are acutely aware that many of our customers will be feeling anxious in many respects. We have compiled this summary of updates, support and relief which is available for both current boat loan borrowers and those intending to apply for a boat loan. As the situation is evolving on a daily basis, more recent information may have come in and we urge anyone impacted to follow the links and directions to source-specific information for their queries.
General Lender Approach
While we are yet to receive specific instructions from our individual lenders as to their intentions, reports are out that the major banks have pledged support for customers facing hardship due to the current lockdowns.
According to media reports, the Big 4 banks – CBA, Westpac, NAB and ANZ, have indicated that eligible customers facing hardship as a result of business closure can contact their lender for relief. Relief may be by way of deferring or rescheduling loan payments and waivers or reductions of fees and charges. It could be expected that other lenders will follow with their own support packages.
Support will no doubt vary in regard to circumstances and loan type and all those affected should contact their lender for details.
Existing Boat Loan Holders
If you currently have a boat loan, either a personal loan or business finance, and are facing hardship due to COVID-19 lockdowns, you are strongly advised to contact your lender. The lenders have indicated that support is available but it will depend on individual circumstances.
When considering rescheduling loan payments, discuss and consider the outcome in regard to any additional interest which may accrue. By deferring repayments the loan term would be extended and interest may be payable over that time.
If the ongoing uncertainty over the COVID-19 situation have you reviewing your current boat loan repayments, contact us to discuss the option of refinancing. Refinancing involves replacing the existing loan with a new loan at a different repayment schedule. Costs are involved but the process may provide the opportunity to secure a lower monthly repayment level. A level that may better suit your current circumstances.
Boat Loan Applicants
As Jade Boat Loans operates on a contactless system, our team are continuing to work to our normal operations while observing health orders in our state. Staff may be required to wear masks indoors and hopefully, this will not affect the audio quality of phone conversations with our customers.
- If you have a boat loan application currently being quoted or processed by our team, that process will continue as advised.
- If you would like to pause your boat loan application due to changed circumstances, contact your Jade consultant.
- If you were or are intending to apply for a new boat loan, we are still quoting all types of boat loans and processing new applications, as usual.
Interest rates and our range of boat loan products are not affected by lockdown and remain as advertised. The RBA will be holding its monthly board meeting to discuss interest rates on Tuesday 6 July. To compare multiple lenders and banks, you can use our boat loan interest rate table.
Finalising Boat Purchase and Finance
If you are currently in the process of finalising a boat purchase, you are advised to check the health orders in your region in regard to what is permitted and what is not. If you need to present in person to the seller or boat dealer to sign a purchase contract, you would need to check if that is considered a legitimate reason to leave home.
Most purchases should be able to be completed online and Jade can definitely complete the settlement and finalise loans without you presenting in person to us or the lender.
Inspecting a boat in regards to a new purchase is unlikely to be considered as an essential reason to leave home, but you should check with your health orders. Restrictions vary across states and some are changing on a daily basis. Check first as penalties can be severe.
Most new boat manufacturers and deals have very informative and comprehensive websites and can take online or phone orders. If buying a second-hand boat in person or online, please be aware of current frauds and scams and resist temptation. If it looks too good to be true, it probably is. Refer to the ACCC website for the latest alerts.
Subject to eligibility, support for individuals and businesses facing hardship due to COVID-19 lockdowns and restrictions is available through both the Federal Government and individual state governments.
- Federal: For all support from the Federal Government refer to https://www.servicesaustralia.gov.au/ for information as to what is available for your circumstances. Support can be accessed online via your MyGov account. Support will need to be applied for.
For Sydneysiders affected, disaster payments are available from 1 July 2021. This support will need to be applied for and individuals will need to meet eligibility criteria. In general, it has been reported that payments of up to $500 are available for those that have lost 20+ hours pw work and $325 for those that have lost less than 20 hours pw work. But criteria in regard to the number of liquid assets does apply.
- State: Individual states are preparing support packages primarily for businesses impacted by the lockdown. Check with your state’s website for details. This type of support will need to be applied for, it does not automatically flow to businesses.
Some support will be by way of a grant and others by cash handouts and other allowances.
Jade Boat Loans Support
Our team are on hand and operating to support our existing and new customers to proceed with their boat finance requirement via our contactless system. Existing arrangements can proceed as planned and we are accepting and processing new boat loans.
If you have a pre-approved boat loan and are/were planning to head out to buy a boat, you may have to defer those plans. So note, that pre-approved loans will expire as per the date on the individual quote. Contact us if you need an extension or review of your loan or quote to allow extra time to source your boat purchase.
Protect Your Score
If you are facing any level of hardship as a result of COVID-19 restrictions you are strongly advised to address the situation and not ignore it. If you are unable to meet your repayment schedule and fall into default, this can have a serious impact on your credit score.
A poor credit score can stay with you for some years and can have a negative effect on future applications for loans and other credit. So take action by contacting your lender and reviewing your loan either over the short term or by refinancing a boat loan as a longer-term solution.
Boating During Lockdown
Different states have different rulings around the use of recreational vessels during a stay at home orders. In past lockdowns, some states have allowed recreational fishing and boat use while other states have banned these activities.
Penalties for not adhering to health rulings can be severe, so make sure you check your state’s ruling and if in doubt, make a phone call to confirm – don’t rely on scuttlebutt!
Fishing and boating businesses should also check guidelines but most general rulings are people can work in their business at their premises where working from home is not possible. But, once again, check the detail.
The Sydney Boating Festival is due to commence on 29 July and at this time, the word is that it is still set to proceed. But the situation in Sydney is an evolving scenario. If you have purchased tickets, check in with the event website over the coming days and weeks. Organisers are holding a meeting on Tuesday 29 June and no doubt an announcement will be forthcoming.
State borders are closed in most instances and those borders extend to the marine as well as the land environment. So no heading from NSW to Queensland or Victoria by boat. Penalties apply to those not following the rules.
Above all, always follow the health orders, wear a mask, physically distance, use sanitiser and seek assistance or support in regard to your financial situation from your lender, our Jade team or a financial advisor.
To discuss your current or new vessel lending application contact us on 1300 000 003
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.