Australians may no longer be able to defer mortgage payments

0

As the March deadline for mortgage deferrals approaches, banks across the country are starting to halt requests for further mortgage payment freezes.

Some of Australia’s major banks have said they will stop accepting new postponement requests.

NAB, which has deferred repayments on more than 110,000 home loans since March 2020, said that today (January 20) is the last day on which further deferrals will be granted, to allow for two-month deferrals ending in the end of March of this year, as mandated by APRA.

Only 7,000 NAB customers are still on repayment break.

Purchase a house or are you looking to refinance? The table below shows home loans with variable interest rates that are among the lowest on the market for homeowners.

Lender

Rate typeGapRedrawOngoing chargesThe initial costsLVRLump sum reimbursementAdditional refundsPre-approval
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable – 2 years (LVR
  • Fast turnaround times, can meet a 30 day settlement
  • For purchase and refinancing, minimum deposit of 20%
  • No ongoing or monthly fees, add compensation for 0.10%

VariableMore details
EARN YOUR INTEREST-FREE HOME LOAN

Nano Home Loans Variable Owner Busy, Principal and Interest (Refinancing Only)

  • WIN your interest-free home loan and save up to $ 1.1 million. Refinancing before October 29. The T & Cs apply.
  • Refinancing only. Quick online application, refinance in minutes, not weeks.
  • No Nano fees, 100% free cleared sub-account. Mobile app. Visa debit card and instant payments.
VariableMore details
YOU COULD WIN $ 100,000 TO REPAY YOUR LOAN *

Owner Occupant Accelerate – Celebrate (LVR

  • For a chance to win $ 100,000 for your home loan, apply to Athena before October 31 and get approved by December 15
  • We reduce your rate based on the amount you have repaid on your loan
  • Automatic rate matching

Owner Occupant Accelerate – Celebrate (LVR
  • For a chance to win $ 100,000 for your home loan, apply to Athena before October 31 and get approved by December 15
  • We reduce your rate based on the amount you have repaid on your loan
  • Automatic rate matching

VariableMore details
EASY ONLINE REQUEST

Garden mortgage (principal and interest) (special) (LVR
  • Unlimited additional refunds
  • Unlimited free withdrawals
  • Optional 100% compensation can be added for $ 120 per year ^

VariableMore details
100% FULL ACCOUNTNO APPLICATION FEES OR CURRENT FEES

Low rate home loan – Premium (principal and interest) (owner occupied) (LVR
  • No upfront or ongoing fees
  • 100% clearing account
  • Additional refunds + reprint services

“While it’s nice to see that most of our customers have resumed refunds, we know that some customers will need our continued assistance,” said Rachel Slade, Group Director of NAB Personal Banking.

“We will continue to provide support to these clients based on their individual circumstances, for example through reduced loan repayments, payment moratoriums, employment support, including curriculum skills vitae and maintenance, and access to financial advisers.

“We ask all clients who are having financial difficulties to contact us as soon as possible so that we can help them move to the other side in the best possible position.”

See also: Do ​​you still have a mortgage deferral? Here’s how your lender will help you

Other major banks – ANZ, CBA and Westpac – did not provide specific details on when they will stop accepting further postponements, but in comments provided by bank spokespersons to Savings. com.au, the common theme was:

  • Most customers are already making regular refunds again, and
  • Help will always be available for those who need it on a case-by-case basis

ANZ said:

“While ANZ has supported our clients during this time of uncertainty, regulators have made it clear that mortgage deferrals will cease at the end of March.”

“We continue to accept requests from financially troubled clients and work with them to understand their situation and suggest the options best suited to their individual situation.

“There are a number of options for those who are still struggling, whether related to COVID or not. These include restructuring their loans to reduce repayments, partial payments or short-term repayment breaks.

“When we enter into payment agreements with customers, we seek to ensure that they are sustainable and realistic.”

ABC said:

“We have moved on to the next phase of client recovery assistance. This includes contacting all home loan clients as their temporary loan deferral periods approach the end to discuss their individual circumstances. “

“We know there will be clients who will not be able to make their repayments at the end of their deferral and we have a range of options, including switching to interest-only refunds, available to customers in addition to our existing range of solutions for customer difficulties. “

Westpac said:

“Westpac has helped more than 145,000 mortgage clients postpone their home loans since the start of the COVID-19 pandemic and about three-quarters have started repaying again. “

“Customers with persistent financial problems will receive personalized assistance on a case-by-case basis. We’re looking at a range of options as part of this process, such as allowing more time to revert to regular repayments.

“Customers who are experiencing financial difficulties can access personalized support through our dedicated support team. “

Majority of deferred mortgage borrowers resume their repayments before the March deadline

Originally scheduled to run for six months from March to September 2020, Australian banks and the Australian Banking Association (ABA) have announced a further extension of COVID mortgage deferrals, ending March 31, 2021.

This extension was supposed to be given to customers who were still struggling to start their repayments, while those who could were encouraged to start repaying their loans.

And they started repaying: at the end of June, 11% of all home loans ($ 195 billion) had deferred repayments, but at the end of November, only $ 49.5 billion (2.8% of all home loans) still had temporary repayments.

Ask for help if needed

Speaking to ABC NewsRadio today, ABA CEO Anna Bligh said there are still a lot of people in trouble.

“I am very happy to say that we have now seen almost 90% of these people, the 900,000 Australians who have deferred their loans, are now back to make these payments,” said Ms Bligh.

“There are still people whose deferrals have not yet reached the end date and the banks are working with them individually.

“But what we are seeing is a much smaller group of people in very difficult circumstances than the banks anticipated that we would see at this point in the COVID experience.”

For those who are still struggling, Ms Bligh said the best thing to do is talk to the bank.

“There are tools that banks have in their toolbox to help people who have taken a deferral and still can’t get back to full payments and are working with those clients one on one,” he said. she declared.

“The best thing for the client, however, is not to be deferred for so long that they start to lose equity in their most valuable asset.”


Photo by Emiliana Hall on Unsplash

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Customer-Owned Institutions and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be taken into account, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as withdrawal fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.

Leave A Reply

Your email address will not be published.