Effective the 23rd March 2020
BHCCU’s COVID-19 loan relief package is available to members who have an existing indebtedness with BHCCU and who have been directly impacted by COVID-19 either by illness, loss of employment or loss of income.
- Repayment relief by way of a pause (deferral) of principal and interest repayments for up to six (6) months (interest will continue to accrue normally).
- Extend the term of the loan repayments to account for the interest accrued during the deferral period and keep the level of repayments the same following the deferral period.
- Interest payable over the life of the loan will be higher.
- You may make additional repayments at any time during or after the deferral period and any such additional repayments will reduce the interest payable.
- Waiver of loan variation fees during the deferral period.
- For deferral periods greater than three (3) months a three (3) months checkpoint of financial positions will be required.
- The terms and conditions of the loan product will continue to apply, including any event of default as outlined in the contract.
Other options available for financial relief
Besides our COVID-19 Loan Relief Package outlined above, there are several other options available to borrowers to help with hardship. These options include the following:
- Access any available redraw on the loan.
- For mortgage loan customers renegotiate to a lower loan repayment by recalculating the loan repayment over the original term of the loan (i.e. in some instances when the loan was originally taken out the repayment was calculated on a higher interest rate. With rate reductions you may now be paying more than required to repay the loan over the original loan term).
- Restructure of the loan over the maximum loan product term (e.g. loan originally taken over 20 years for a mortgage, can extend term a further 5 years to reduce repayment level).
- Consolidation of loans to reduce repayment level.
In all cases it is recommended you consider your personal circumstances and all options available to you before you enter into a hardship arrangement.
To discuss your financial position and options available to you please contact one of our specialists by calling 08 8088 2199.