Coronavirus Home Loan Support: Should you defer your Mortgage Repayments?
Christian Mc Karthy | On 04, Apr 2020
Coronavirus outbreak has led to global financial stress. Many people are struggling to repay their home loans. For such stressed-out home buyers, few banks have allowed them to defer mortgage repayments for upto six months.
But some buyers are still wondering about its implications; this guide will help you explore the ramifications of this home loan support in this pandemic situation.
Since the coronavirus outbreak, thousands of people have lost their jobs due to sudden downfall in economies of countries. Many people who have bought the home on loan are unable to make mortgage repayments.
With the purpose to lessen their difficulty, several banks have introduced home loan support for their customers. Under this scheme, impacted customers are allowed to defer their mortgage repayments for upto six months.
Home loan support is a welcoming relief, especially for the ones who have lost their source of earning, and therefore, are no longer able to pay home loan repayments. But before jumping on your phone to contact the bank, you must know about the potential implications about deferring mortgage repayments.
Which Banks Are Providing Home Loans Support?
Customers who have taken home loans and are now facing financial issues can pause their home loan repayments for upto six months. Though, customers are required to increase their loan repayments over their remaining home loan term.
Customers of Westpac who lost their jobs and are suffering from the loss of income due to COVID-19 pandemic are encouraged to contact the bank to get three months deferral on home loan mortgage repayments. After a thorough review, the bank can give an extension for the next three months as well.
ANZ customers who have been impacted by COVID-19 can defer home loan repayments for six months, along with a three-month review.
4) Commonwealth Bank
This bank also allows home loan customers a relief in the form of deferring their repayments for about six months. The bank will reduce the loan payments of customers to a minimum under their home loan contract from May 1st, 2020.
Offerings of Smaller Banks
Below mentioned are the offerings of smaller banks for their home loan customers. In case you are not sure about the offering of your bank, you need to contact them directly.
1) Macquarie Bank
From March 20th, the customers of home loan will be allowed to defer mortgage payments for six months.
All home loan customers of Suncorp can defer their scheduled home loan repayments based on cases.
3) Bank Australia
Home loan customers of Bank Australia are allowed to defer their mortgage payments for three months. This period can be extended to 6 months. Of note, specific fees will be waived.
4) St George, Bank of Melbourne, Bank SA
These subsidiaries of Westpac have also announced packages for home loan customers that include six months deferral of mortgage repayments.
5) Bendigo and Adelaide Bank
Home loan customers of this bank can also defer their repayments for up to 6 months with some fees that will be waived by bank.