Many home-owners who accessed mortgage holiday programs when Covid-19 struck have returned to making full repayments on their home loans. But, for those still struggling, the major banks have announced a four-month extension of payment deferrals.
Major banks say the number of customers asking to defer their mortgage repayments fell in June, as economic conditions improved. Australian Banking Association chief executive Anna Bligh says: “Encouragingly, banks are seeing that many deferred customers are choosing to resume making loan repayments. “This is important. Returning to paying down your loan as soon as you can is better in the long run for you, your business, and the economy.” Westpac’s acting chief executive of consumer banking Richard Burton says many of the bank’s 120,000 customers who had applied for a payment freeze have asked to resume their loan commitments before the end of the grace period. CBA says 20% of customers who had requested deferrals are now making some payments . According to NAB, 10–15% of its customers who claimed hardship have reversed decisions to defer repayments.