Coronavirus Home Loan Support: Should you defer your Mortgage Repayments?
Eligibility for Home Loan Support
In case a person has lost his/her job or income due to COVID-19 pandemic, he/she can qualify for this home loan relief. Therefore, home loan customers need to keep their documents ready like proof of income and letter of termination in case of job loss.
After this coronavirus outbreak, many banks have allowed their customers to defer home loan mortgages while some banks are allowing their customer to defer repayments on a case-by-case basis.
In case of any uncertainty about your banks and its home loan offerings, directly check with your lender or banker.
Do you need to Defer Home Loan Repayments?
If your current job is at stake, or if you have already lost your job, you might lose your home due to your incapacity to pay home loan mortgage. Thus, deferring the home loan repayments for almost six months can be a relief for you.
Since the home loan support has launched, more than 15,000 requests have been received by Commonwealth Bank for home loan repayments.
As per the NAB, holding your repayments can free up around $1,834 for a borrower every month with $400,000 mortgage.
Despite the fact, one needs to fully understand the ramifications of deferring home loan mortgage right before contacting the bank.
Although your home loan mortgage repayments would be reduced or say paused, remember, it is not your mortgage holiday. This is because of the interest that will be accrued to your principal loan amount. This demonstrates that if you don’t pay interest during the deferral period, it will be accumulated in your outstanding loan balance.
