‘The future is hard to predict’: Struggling borrowers get extended repayment holiday
The banking industry will give struggling borrowers more time to repay their loans by extended mortgage deferrals for an additional four months.
The move is designed to avoid tumbling off September’s looming fiscal cliff, the moment when JobKeeper payments and the initial six-month mortgage deferral period are set to expire.
Which means people who deferred their home loan in March, and who take up the banks on the offer of an extra four months, will have gone 10 months without making a repayment on their mortgage.
ANZ CEO Shayne Elliott tells Brooke Corte the bank is trying to be flexible for customers amid an uncertain future.
“We’re not set and forget, we’re willing to modify our approach,
“Where it makes sense for customers we’re going to be able to extend those deferrals but for most people, we actually think they’re not going to need that hopefully,”
Mr Elliott says about 10 per cent of customers who received a mortgage deferral actually continued to meet their regular payment obligations.
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