PHOTO: Westpac

Westpac’s Q3 financial update saw their mortgage delinquencies soar by 55 basis points due to the COVID-19 pandemic.

Delinquencies over 30 days jumped from 188 bps to 243 bps over the three months to June.

There was an equally big jump in 90+ day delinquencies, up from 94 bps to 149 bps.

“Our approach to applying COVID-19 relief meant an increased number of customers entered hardship assistance”, Westpac advised.

The big four bank provided 135,000 home loan customers with mortgage relief up to July 31, accounting for $51 billion of their $446 billion loan book.

64% of the mortgage holders seeking the relief were owner-occupiers, and 79 per cent were paying principal and interest repayments.

The mortgage deferrals primarily came from New South Wales and Victoria, who made up 70 per cent of all mortgages deferred.

After checking in after three months of the extension, Westpac said that half were expected to return to payment, and the other half requested a further three month extension.

That leaves $30 billion still on pause.