5 ways to stay financially healthy during Coronavirus

By Olivia Gee · · 4 min read
Fact Checked
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The development of COVID-19 (aka Coronavirus) as a global pandemic has brought with it a wave of social panic, employment disruption and financial market volatility. While some people are going overboard on toilet paper purchases, others are preparing for the possibility of self-isolation, and the myriad financial complications that could accompany this and other impacts of the constantly shifting economic and political landscape.

We’ve been diligently keeping track of how Coronavirus might affect your bank balance, and we’ve come up with a few tips to help you stay in the green while red alarms sound across the country.

1. Take advantage of the recent RBA cuts and look at refinancing your home loan

Home loan rates are at an all-time low after the RBA cut rates to 0.5% in March, with 35 lenders (including the big four) in Mozo’s database last week announcing their intention to pass on the full rate. So savvy homeowners might put their energy into refinancing this month. 

Refinancing your home loan is essentially shopping around for a more favourable interest rate or flexible loan features. It isn’t for everyone though. If you own less than 20% of the property (i.e. you have a loan ratio value over 80%), switching may cost you more than it provides as it’ll require a second round of lenders mortgage insurance. There’s also a range of fees involved in breaking certain loans and hooking up with new options, so read widely and come armed with info from our home loan refinancing comparisons.  

2. Or, talk to your bank about a mortgage repayment 'holiday' if you're unable to work due to the pandemic

Unfortunately, people in certain industries aren’t able to take their work home with them. Many casual workers also don’t have leave entitlements, and other workers may have to take unpaid sick leave. 

If you find yourself in this situation and you’re a mortgage holder, this could spell big trouble for your loan repayment plan. Happily, there are some things you can do to take the pressure off. While wide-scale mortgage suspensions aren’t currently in effect in Australia, some of the big banks are already offering assistance packages for those financially impacted by the virus. 

Getting on the phone and having a chat with your home loan provider is a great way to figure out what you could be eligible for. If your income is substantially reduced when having to self-isolate because of  the virus, a mortgage holiday - when repayments are paused due to  job transition periods or unforeseen illness and injury - is a possible short term solution. 

3. If you can work from home, find a fab new energy deal to run your personal office

As more cases of Coronavirus are being reported across Australia many companies are choosing to close their offices for the 14-day virus incubation period, and are asking those who can to continue work while self-isolating. This means all the energy you normally enjoy at the office will come out of your home. 

So, why not take this moment to reassess your provider and make sure you’re getting the best deal while using your lights, kettle, internet connection and computer for an extra eight hours a day? Our handy energy provider comparison tool will help you find the best plan for your home.

4. Consider a term deposit to keep that nest egg safe and warm

While the interest rate cut has spelled bad news for growing your rainy day fund in many savings accounts, a term deposit may be a safer haven for your nest egg in 2020. It’ll let you squirrel away your acorn savings stash for a set period at a set interest rate, ensuring your money grows to its full potential in these unstable times. 

Term deposits are relatively low maintenance - although some come with minimum deposits and other requirements - and since you can’t access the growing funds for whatever decided time period you chose (perhaps six months or one year), they can help you reach those long-term savings goals. Naturally, this is also the catch. Be very sure you have enough funds across your accounts and income to keep things rolling smoothly while a portion of your savings are on a little term deposit holiday. 

5. If you have international travel plans, look at locking in a currency exchange rate before the Aussie dollar plummets further 

Prospective holidaymakers mightn’t be investigating upcoming trips due to travel bans and lockdowns across Europe, the US, Asia and beyond, but if you’ve already got tenable travel plans in place, you’ll want to make the most of a difficult situation. 

The RBA recorded the Aussie dollar sitting at 0.6457USD as of yesterday (March 12), continuing its decline. Locking in an exchange rate on a prepaid travel card is a way to mitigate further damage to your stockpile of holiday funds that exist as Australian dollars. 

These products allow you to load multiple foreign currencies while at home and abroad, maintaining the same exchange rate you locked in upon opening the account. They function similarly to your standard debit card, but can give you peace of mind in what is otherwise a rather stressful time to be a traveller.

But as with any financial product, prepaid travel cards can come with various fees, across ATM use, reloading, cross currency and closure, so you’ll need to weigh all this up against the potential benefit of maintaining current exchange rates.

RELATED ARTICLE: What the Coronavirus stimulus package will mean for Aussie small businesses.

For more finance fixes, find all the latest money news, tips, guides and comparisons in our banking hub.

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Last updated 30 October 2024 Important disclosures and comparison rate warning*

Refinance home loan comparisons on Mozo

Promoted

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    5.93 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Fixed Express Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.54 % p.a.
    Fixed 2 years
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $2,852
    Go to site

    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.59 % p.a.
    Fixed 5 years
    Comparison rate
    6.27 % p.a.
    Initial monthly repayment
    $2,867

    Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

  • Variable Home Loan

    • Owner Occupier
    • Principal and Interest
    Interest rate
    5.98 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,991
    Go to site

    Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discounted Home Value Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,995

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.22 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.18 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $3,056

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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Need help with your Home Loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Lendi can help! Lendi’s expert advice is completely free of charge.

Learn more

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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