Home loan customers and property investors who have deferred their loan payments for six months or longer will not have their credit ratings affected until at least March 2021, under revised guidelines announced by the Australian Banking Association.
The ABA says it will extend the credit rating amnesty by a further six months as the economic recovery from the pandemic takes longer than expected.
Banks have allowed borrowers suffering financial hardship because of the pandemic to pause loan payments for up to six months, with the possibility of extending the deferral period to 10 months or until March 2021. However, the proviso is that the payments had to be up to date when the relief was approved.
Under the new guidelines, the amnesty is extended and customers who have fallen into arrears with repayments can escape a credit rating penalty if they restructure their loan or apply for another hardship program.
Customers who have made partial payments during the loan deferral period will bene t from an improved repayment history.