AFG has released a COVID-19 Action Plan Calculator to help brokers outline the options available to their customers if their circumstances have changed due to COVID-19.
AFG Head of Sales and Distribution Chris Slater explained the development of the tool: “We developed this tool for Brokers to help them have a more informed discussion with their customers whose circumstances have changed as a result of COVID-19.”
“Lenders are offering support to mortgage holders if they have suffered a loss of income due to COVID-19, however our brokers are telling us their clients need help to understand what changing the structure of their loan to arrangements like Interest Only or Hardship and what those alterations to their loan structure will mean long term.”
“To help our brokers have a more informed discussion around the different options available we’ve created a ‘COVID-19 Action Plan Calculator,” said Chris.
“The calculator enables a broker to demonstrate a clear picture to their clients of how their loan will look now and into the future based on a variety of options available from the lender.”
Some of the scenarios that can be run through the calculator include:
- Paying the minimum loan repayment on a loan
- Moving to Interest Only repayments
- Changing the monthly loan amount to a preferred amount
- Pausing repayments completely for a period and the impact that will have when repayments start again
The calculator provides a holistic view to the broker and customer of the potential impact each scenario would have on the loan balance, maturity date and monthly repayments.
The calculator is easy to use with editable fields and once a scenario is complete, the broker can save the sheet as a PDF and email or share via video call with their customer.
“The relationship between a broker and their customer continues to be strong and at times like this the broker’s ability to work with their customer and their understanding of lenders and the available options, are just as important as the assistance the broker provides a customer when considering a home loan choice.
“We encourage all mortgage holders affected by a loss of income due to COVID-19 to start the conversation with their broker and lender as soon as possible to find their way through the current situation.”