Australia’s largest home lenders will allow eligible mortgage-holders to defer their mortgage repayments for up to six months if they are struggling to make payments due to the impacts of the coronavirus. Unpaid interest during this time would be added on to the customer’s loan balance.
Commonwealth Bank, National Australia Bank, ANZ Bank, Westpac and Macquarie are also prepared to renegotiate terms on small business loans on a temporary basis.
For those home loan borrowers who are concerned about their financial future, both the Federal Government and the Australian Banking Association have the following advice:
- All lenders have hardship teams ready to help customers in tough times.
- Talk to your lender to discuss your options.
- You may be able to change the terms of your loan, or temporarily pause or reduce your repayments. This is called a hardship variation.
As well as deferring repayments, banks may offer other assistance by temporarily extending the term of the loan or allowing interest-only repayments.