Dear Valued RSFA Clients,
Wow, what happened right?
Well, while fear and chaos consume the world, we have the options to take stock and assess how the current times and risk are affecting us, our businesses, and families.
As the world continues to tackle the COVID-19 crisis and we see unprecedented times here in NZ, I am aware that many of my clients will feel the impact financially and we want to assure all clients that help is available for those that require it, and that the team at RSFA (Rod & Peach) are here to provide advice and direction to ask for assistance during these challenging times. In a nutshell, banks are now geared up enough to start working with clients in earnest as they race against the clock to help people en masse, as effectively and kindly as possible.
If you are a business owner who has employees or a sole trader/self-employed, the government have provided a business support package which provides business tax changes, wage subsidies and leave payments. More information regarding Tax relief can be found here and via this link
https://www.media.ird.govt.nz/articles/inland-revenue-updated-advice-to-businesses/
Information regarding who qualifies for wage subsidies/leave payments can be found here. The leave payments are for those who need to self-isolate or cannot work due to being sick/caring for dependents. The wage subsidy is available for businesses that have been affected by COVID-19.
Work and Income may be able to help with urgent costs for:
- Food
- Accommodation costs (rent, mortgage, board)
- Power, Gas, and other essential utility bills
- Medical and Dental costs
You can find out more here.
How the Banks are Handling Hardships
ASB
ASB are currently offering Interest Only payments, a home loan holiday or a term extension (up to 30 years) for up to 3 months
The process we have been asked to follow is that if you would like to access the ASB packages you need to contact them directly 0800 803 804, or through internet banking. Be aware there will be a delay.
Sovereign Home Loans
Sovereign Home Loans are following the same criteria as ASB. Their current method of applying for Interest Only payments or a Mortgage Adviser and they will pass it on to Sovereign for assessment. Please contact me direct at support@rsfa.co.nz and my executive assistant will prepare a response as to what is required, and we will work with you direct.
The basic information we will need is as follows:
To apply for a repayment holiday your clients need to submit the request to us in writing, the request needs to be physically signed by all parties to the loan and include:
- The accounts the request is in relation to
- The duration requested (maximum 3 months)
- The reason for the request (please be as detailed as possible). If the request is in relation to COVID-19 please also include:
- How they are being impacted
- The industry they work in
- The expected time frame of impact (if known)
ANZ
ANZ is currently allowing customers to apply for Interest Only payment for up to 12 months (for all mortgages under 80%) or have their Principal and Interest payments extended up to 30 years. Click the link below and it will take you to the ANZ hardship page. You can also call them on 0800 240 438.
BNZ
BNZ have created a simple request form to apply for a home loan repayment deferral. You are offered the choice of a home loan repayment deferral (mortgage holiday) for up to 6 months or Interest Only payments for up to 12 months. The link below will take you directly to the BNZ hardship/Covid page. you can also call BNZ on 0800 375 007 to ask them questions.
Westpac
The process we have been asked to follow is to click the link below and it should take you to the Westpac hardship/Covid page. You can also contact them on 0800 606 606.
SBS
The process we have been asked to follow is to click the link below and it should take you to the SBS hardship/Covid page. You can also call them on 0800 727 2265
TSB
The process we have been asked to follow is to click the link below and it should take you to the TSB hardship/Covid page. You can message them through a link on the page or call 0800 872 226
Resimac
The process we have been asked to follow is to click the link below or call them on 0800 384 858
Here are 7 Key Areas You Should Consider Immediately
- Cash – Preserve cash at all costs. You can immediately start building a cash “war chest” for your business to survive.
- Protection – Seek advice around updating and upgrading your asset protection. It’s very important to review strategies to protect the equity in your family home and other assets held in personal names. Legal advice may be warranted.
As far as insurance, this would not be a good time to suffer and injury or illness that disables you, if there are already financial challenges. One common rebuttal I hear is that I’ll buy insurance when things are better; doesn’t quite work that way, so get in touch and we will examine what your budget will allow now to protect you and your family’s interests, and we can always expand. Some (priority based) cover is better than no cover. - Banks and Funding – You should contact your bank or a preferred non-bank/external lender to explore options for additional lines of credit if required. Alternative funding sources should also be considered. Do this as soon as possible to avoid processing delays; banks will quickly become overwhelmed by other bank loan applications.
- Management Team – Work through the COVID-19 Continuity Plan with your Management Team, then quickly communicate appropriate decisions to your entire team. Communication and keeping up the discussion around the positive things, will help. What we emanate becomes, a wise person once told me!
- Employees – It may be necessary to discuss reduced working hours and/or working from home arrangements with your employees. Employees will be scared, so they need to be reassured by you and be given an understanding of your plan to keep the business alive.
- Customers and Suppliers – Great communication is needed. Customers require peace of mind that, where possible, it’s “business as usual”, and you have suppliers you can rely upon. Open and transparency here can cement even strong future relationships.
- Mental Health – This could be one of the most stressful times ever for you and your employees. We can provide links to assistance for you to help you and your team through this challenging period. If you are an insurance client of mine and are suffering any sign of this, please be in touch confidentially.
These are straining times and emotions can be fluid in this strange situation we all find ourselves in. We are all going through different stages of our emotional response cycle of be kind to yourself, the person next to you and the other person next to you – at a 2 metre distance.
The Mental Health Foundation has a support page on their website with some great tips on how to look after yourself and your family during this time. You can find more information here.
I am looking at adding a regular blog about Covid either by blogging or vlogging (video blog). Team RSFA do care about your well being during this time and will be as factual, efficient and kind as we can, to just make your life that much easier.
Take care and we will get through this and come out stronger.
Kia Kaha,
This post contains general information only. The opinions expressed in this article should not be taken as financial advice, or a recommendation of any financial product. Rod Schubert Financial Advice (RSFA) shall not be liable or responsible for any information, omissions, or errors present. We recommend seeking professional legal and/or financial advice before taking any action. Our Disclosure Statements are available on our website.