A short April 2020 YouTube video by Aaron Whybrow (Diagnostics and Finance) advising viewers about the potential impact of pausing home loan repayments on their credit files during a market anomaly. Aaron explains that bank practices vary and that credit reporting agencies are being consulted; he urges borrowers to ask lenders how a repayment pause will be recorded (and to get it in writing or recorded), to continue payments if possible, and to contact his service if they need help.
Hey there, it's Aaron from Diagnostics and Finance protecting your credit rating. In this time there's a lot of media attention on pausing your home loan, deferring your payments. The banks capitalise in the interest and fees and charges onto your loan. But what happens on the other side? What happens to your credit file? Now this is where it varies between bank to bank. Some banks and commentary that's coming out is saying that a lot of people are going to do this, which means it's an anomaly in the system. And there is active communication with the credit reporting agencies in regards to how they're going to treat the repayments during this time. Some banks are coming out with their own little spiels on being able to make payments during this time. So you pause your home loan but if you continue making some payments there might be some benefits associated with that. Some banks are still saying that they don't know what's going to happen with your credit repayment history that goes on your credit file. But what we want to do is make sure that you get the right information and you ask the questions. So when you are going to a repayment pause that you ask the question what is going to happen? And potentially even get that into in writing or recorded conversation. What we want to do is be able to get you to your next step after this anomaly in the market that you'll be able to buy the homes, you'll be able to upgrade, you'll be able to change what you need to, you'll be able to apply for different credit after to help you build business, your personal wealth, get moving again and that's what you want to do. So in this time if you need to repayment pause, make sure you ask the question what's going to happen to my repayment history on the credit file and if you don't have to go into a repayment pause, please continue making your repayments as you can and if you have any trouble just give us a call. Alright, it's Aaron. Bye for now.
