Business closures and job losses have had a flow-on effect for many Australians who are now struggling to manage their home loan repayments. This has prompted the major banks to throw a lifeline to mortgage holders.
The big four banks are aiming at making life a little easier for their customers.
Here’s a breakdown of what the Big Four are currently offering existing mortgage holders in response to the coronavirus pandemic.
Under a home loan repayment deferral, ANZ customers won’t be required to make repayments to their home loan for a period of time.
Unpaid interest during the period is capitalised, meaning it’s added to the customer’s outstanding loan balance to be paid over the remaining loan term.
ANZ’s COVID-19 support package includes three measures for home loan customers impacted by the crisis:
The bank says customers ahead in their home loan repayments may have options such as accessing their existing redraw balances or using funds in their offset or deposit accounts.
CommBank today announce further changes to support home loan customers impacted by coronavirus.
Mortgage holders who’ve been granted a six-month home loan holiday will also receive a one-time payment “to offset interest on interest costs during the six-month deferral period.” The payment amount is dependant on the loan balance.
Here are the other relief measures for Commonwealth’s home loan customers:
As well as a six-month mortgage deferral for struggling owner-occupiers or investors, NAB’s support for home-owners during COVID-19 includes:
Under Westpac’s COVID-19 Customer Support Package, home loan customers will be able to apply for a repayment deferral for an initial three-month period, and a possible three-month extension after review.
The bank has also announced a $10 billion home lending commitment, to support more Australians into their next home.
Westpac is also offering new-low fixed home loan rates for one, two or three years for owner-occupier customers paying principal and interest.