The coronavirus pandemic has seen a surge of interest in buying caravans with many Australians opting for this style of travelling and holidaying to deal with border and travel restrictions. As some of these restrictions look like extending through this year it can be expected that many more will consider a caravan purchase. As many buyers require finance for their caravan, camper or mobile home, we're providing a quick overview on some of the changes and updates to the caravan lending scene that are due in the near future.
General Overview
- As major lenders to the recreation and leisure sector, Jade Caravan Finance is across the latest news with our lenders and continues to be ideally placed to secure cheaper finance at our better interest rate assurance.
- As is the case across the financial markets, the interest rates on consumer loans including caravan finance, are at very low rates and this is anticipated to remain through 2021.
- The caravan loans that we offer – Secured Caravan Loan and Unsecured Caravan Loan – will remain the same through 2021 but some applicants may be affected by proposed changes to consumer credit laws.
- Proposed changes to consumer credit laws are designed to make the flow of credit faster and easier in some sectors.
- For repayment deferrals and payment pauses, the major banks are implementing changes to their policy and approach to dealing with customers in financial hardship.
- Banks will be adopting a sustainable solution-based approach to hardship applications rather than the deferral approach adopted in response to the COVID-19 impacts.
Changes to Consumer Credit Regulations
As part of the 2020/21 Federal Budget, the Government announced a proposal to ease consumer credit laws to fast-track and streamline the flow of credit to stimulate the economy, We have posted a detailed article on the proposed changes and we refer you to our News and Tips for a refresher read.
The changes are proposed for 1 April 2021 when the stakeholder consultation phase is concluded. We will be staying across developments to post details of the changes when introduced. The changes are intended to make it easier for some applicants to secure some consumer loans. If you have questions now about how this may affect your proposed caravan loan, please feel free to call us and one of our consultants will explain the detail to you.
Changes to Bank Repayment Deferral Arrangements
During the peak of the coronavirus pandemic when many people were impacted with loss of or decrease in income, the government introduced assistance to the banks and lenders so they could support customers with loan repayment deferral requests.
As of the end of March 2021, this support will no longer be in place for the major banks and they will be implementing changes to their approach to requests and applications for new loan repayment deferrals. Changes will also affect those that are requesting an extension to their existing deferral arrangements.
We have been advised by one of our major bank lenders that new deferrals on some loan will not be offered after 31 January 2021. In place of the deferral arrangements, individual banks will be addressing individual applications for deferrals with customers with the objective of establishing a more sustainable solution.
Those customers that have deferral arrangements in place, should have the conditions remain unchanged to end of March 2021. If you have an existing arrangement to defer your loan repayments with your bank or lender, it is advised that you contact the lender to discuss how the situation will move forward.
For those facing ongoing financial hardship and/or looking at requesting a new application to defer loan repayments, you should also contact your lender and discuss the options available to you. It is always advisable to be proactive in contacting the lender if you are in this position or think you may be facing difficulty in the future rather than simply default on your repayments. If you do not address the situation and simply do not make your repayments the risks and outcomes can include repossession of your caravan and long-term negative effects on your credit profile and resulting ability to source credit in the future.
The JobKeeper program is due to end at the end of March 2021 and this may have an impact on some borrowers.
Lending Update and Outlook
Jade Caravan Finance is accredited with many banks and lenders and you can review Our Lenders on our website. When applying for low interest rate caravan loan you don’t automatically have to apply to your bank and you don’t have to nominate a lender when applying with Jade. Your Jade consultant knows the caravan finance market and will source you the best loan from across our lender panel.
You don’t have to be a current customer of a bank to be eligible to apply and with your Jade consultant handling the paperwork, the application and processing procedure is streamlined.
As the year progresses and developments and changes in the lending sector are announced we will be posting regular updates, so stay connected with Jade to stay informed on caravan loans and finance.
To discuss finance on a caravan speak with one of our Jade Caravan Finance consultants on 1300 000 003
DISCLAIMER: THE DATA, POLICIES, INFORMATION, CONTENT AND REFERENCES AS PRESENTED IN THIS ARTICLE ARE FOR GENERAL PURPOSES ONLY AND ARE SOURCED FROM RELIABLE SOURCES BUT NO LIABILITY IS ACCEPTED SHOULD THERE BE ERRORS OR MISREPRESENTATIONS OF DETAILS IN THE CONTENT. THIS INFORMATION IS NOT INTENDED AS THE SOLE PURPOSE OF MAKING FINANCIAL DECISIONS. READERS SHOULD REFER TO A FINANCIAL ADVISOR OR ACCOUNTANT IN THE EVENT THAT THEY REQUIRE PROFESSIONAL GUIDANCE AND CONSULTATION ON THEIR INDIVIDUAL FINANCIAL POSITION.
