PHOTO: Australian home loans
Banks will provide more breathing space to those hit by COVID-19, with as many as 779,000 lenders to get a further four months repayment deferrals.
The paused accounts amount to $236 billion.
The 10-month total deferral of repayments for households and businesses unable to restructure their debt or restart paying was facilitated by the federal government and the banking regulator.
The Federal Treasurer Josh Frydenberg has welcomed the extension.
“If somebody’s lost their job and they’ve got a residential mortgage or indeed if their business has been closed and they’ve got a commercial loan, then they would be cases where the customer would need to talk to their bank, and I understand it that the bank is going to be very supportive of their customers,” he said.
He said the Australian Prudential Regulation Authority would continue to ease regulations on the banks, to encourage them to support customers.
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