800,000 struggling families who were granted six month deferrals on their mortgage repayments will be asked to resume full repayments from September said Anna Bligh, CEO of the Australian Bankers Association.
Borrowers can apply for another four month deferral without impacting their credit rating but further deferrals “will not be automatic” and only go to “those who genuinely need some extra time.”
“Those who are able to repay their loans will resume doing so, which is in the best interests of those customers,” said Anna Bligh.
But what about everybody else who is still in this COVID-19 Depression?
The ABA says “they will be assisted through their bank’s hardship process to determine the best long-term solution for their individual circumstances.
What are the options? The ABA says:
- Extending the length of the loan
- Converting to interest only payments for a period of time
- Consolidating debt
- A combination of these and other measures
Banks have put on thousands of extra hardship team staff and Anna Bligh wants you to be nice when they ask you to begin repayments again.
“Please be patient with bank staff as we enter this next phase”.
Banks must, according to the Banking Code of Practice:
Communicate with customers in a clear and timely manner,
Act with honesty and integrity
Treat customers in a fair and ethical manner.
Links to bank home loan support for COVID-19 affected borrowers in Australia:
Commonwealth Bank Support for Home Loan Customers page.
Westpac COVID-19 Customer Support Package page.
National Australia Bank (NAB) Banking Support Guidance During COVID-19 page.
THIS INFORMATION IS GENERAL IN NATURE AND DOES NOT TAKE INTO ACCOUNT YOUR PERSONAL SITUATION. YOU SHOULD CONSIDER WHETHER THE INFORMATION IS APPROPRIATE TO YOUR NEEDS, AND WHERE APPROPRIATE, SEEK PROFESSIONAL ADVICE FROM A FINANCIAL ADVISER.
IF YOU OR SOMEONE YOU KNOW IS IN FINANCIAL STRESS, CONTACT THE NATIONAL DEBT HELPLINE ON 1800 007 007.