Knowing how much our customers cherish their boats, it is devastating to see images of all types of boats and crafts damaged and dislodged from their moorings in the floods currently impacting NSW and Queensland. The sight of a PWC still on its pontoon and still with cover intact floating down the Brisbane River was heartbreaking. Hopefully that owner was reunited with their craft. Ocean Crusaders, a Queensland-based waterways clean-up organisation, posted on social about rescuing a stricken yacht and managing to contact and advise the owners. For those not so lucky and have lost their vessels there is flood crisis support available.
For boat owners with boats under finance that have lost their boat or the vessel is written off and/or have been impacted by the floods and unable to meet repayments, assistance has been announced by the Australian Banking Association.
Announcement by Australian Banking Association
The Australian Banking Association which has most of Australia’s banks as members has announced a raft of support measures for holders of various loans – both personal and business. The support being offered is quite similar to what was put on the table during the initial economic impact of COVID-19 was felt in 2020.
Anna Bligh, CEO of the Australian Banking Association, issued the statement which states that deferrals of loan repayments and other arrangements are being offered to loan holders by individual banks. The support covers home mortgages, a range of business loans and personal loans. Ms Bligh said that those seeking assistance with loan repayments due to being affected by the flood situation should contact their specific bank and discuss what options are available for their individual circumstances.
The Association’s statement lists a range of assistance and support measures which are being offered by the banks, but will be dependent on individual situations.
The range of support measures include:-
- Loan repayment deferrals of up to 3 months
- Waiver of fees and charges
- Consolidating debt to repayments that are more manageable
- Restructuring loans with establishment fees waived
- Credit card payments deferred
- Increased limits on credit for emergency situations
- Finance to address issues with cash flow
Ms Bligh said that these measures should provide peace of mind for flood-affected individuals and business in relation to their finances.
Who to Contact
If you have a boat loan that was arranged through Jade Boat Loans and you are impacted by the floods and unable to meet loan repayments you should contact the individual lender that we arranged the loan with. The Australian Banking Association and this statement refers to banks, but it may be anticipated that similar measures would also be offered by non-bank lenders.
Regardless of which lender your loan is with, you should contact them if you are unable to meet repayments to advise them and to discuss options available to you.
Note that when discussing support measures, deferrals do not mean that the repayments are simply forgotten or deleted. Deferrals are not waivers. The repayments are deferred to a later time but will still be required to be paid. Deferring repayments for up to 3 months means the loan would be extended by those 3 months. Payments effectively are paused for those months and then resumed.
Boats Under Finance: Action Required
If you have lost your boat or it has been damaged beyond repair due to flood damage then a different set of steps should be taken to those seeking assistance with repayments. When taking on a secured boat loan, the lender will require that a marine insurance policy be purchased.
If the boat is a write-off, then you will need to make contact with your insurer. Insurers have been inundated with claims but are bringing extra resources into affected areas to process claims. When contacting your insurer you will be advised of the process involved with lodging a claim.
In addition to contacting the insurer, those in this situation should also make contact with their lender and advise them of what is happening. Failure to advise the lender and simply overlooking loan repayments when due may result in a negative impact on a credit profile. This can create problems when applying for loans and credit in the future.
When the claim is assessed and approved, the insurer will pay out the lender what is owed with the balance, if any, paid to the boat owners. It is important to ensure that the insurance coverage is in line with the value of the boat to avoid having to pay extra to the lender in these situations.
If you would like to replace your vessel with a new purchase as a sense of urgency, please contact Jade Boat Loans to commence the boat loan application.
Boat Loans Currently Being Processed
Those affected by the floods that have a boat loan currently in progress with Jade Boat Loans are assured that the process will not be affected. Our consultants are continuing to work and provide our full range of lending services at this time.
If the flood has caused a change in your individual circumstance and you would like to make changes to your boat loan application, please contact your Jade consultant.
Government Support
Support for NSW and Queensland victims of the floods is available through both Federal and state governments. Service Australia and the state departments will have details of what is available to you.
The floods are persisting with more storms and unsettled conditions in the forecast. Waterways will remain extremely dangerous with extensive debris and navigational signage will be impacted. Stay safe and follow the guidance of the marine authorities and preferably stay out of rivers and creeks until the situation stabilises.
Contact Jade Boat Loans on 1300 000 003 to discuss boat loan options
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MIS-PRESENTED DATA AND DETAILS HEREIN.
"
alt="">