Borrow
1 in 10 mortgages temporarily deferred
The financial impact of COVID-19 has been revealed, as one in 10 mortgage-holders has deferred payments during the pandemic.
1 in 10 mortgages temporarily deferred
The financial impact of COVID-19 has been revealed, as one in 10 mortgage-holders has deferred payments during the pandemic.
Stats released by APRA showed that as at 30 June, data submitted by all ADIs indicates that $274 billion worth of loans have been granted temporary repayment deferrals, which is close to 10 per cent of total loans outstanding.
The figures showed that 9 per cent of households or 496,606 houses had deferred on their mortgage repayments valued at $195 billion, compared with the total value of home loans at $1.8 trillion.
Housing loans make up the majority of total loans granted repayment deferrals, although small-business loans have a higher incidence of repayment deferral, with 17 per cent of small-business loans subject to repayment deferral, compared with 11 per cent of housing loans.
Canstar’s finance expert, Steve Mickenbecker, explained that it is both good and bad news, with it being bad for the 9 per cent who are under financial stress, but a positive that the overwhelming majority of homes did not need the bank’s support.
“The even better news is that $18 billion of home loans came out of pause during June. A surprisingly early return to normality. Let’s hope that Victoria’s July slide back into COVID hasn’t reversed this,” Mr Mickenbecker noted.
Canstar’s recent survey revealed that 46 per cent of home loan borrowers have had their income cut or employment status changed due to the COVID-19 pandemic, but the majority have not at this stage requested a formal loan deferral. Those borrowers covering the shortfall with redraw or offset balances will be hoping for early economic recovery.
The finance expert also pointed out that businesses are currently doing it tougher than households.
“With 17 per cent of loans temporarily deferred, small business is doing it tougher than households, and the necessity of the further JobKeeper breathing space is confirmed.”
RELATED ARTICLES
About the author
About the author
Loans
Navigating the Australian student loan landscape: Options for financing your education
Securing financing for post-secondary education is a significant step for many Australians, offering a pathway to advancing career prospects and achieving personal growth. Read more
Loans
Secured vs. unsecured personal loans: Which is right for you?
When considering a personal loan in Australia, one of the first decisions you'll face is whether to opt for a secured or an unsecured loan. Each type has distinct advantages and drawbacks, and the ...Read more
Loans
Weighing up interest-only home loans: What Australian borrowers need to know
Interest-only home loans have become a topic of considerable interest among Australian borrowers, offering a unique approach to home financing. This type of loan allows borrowers to pay only the ...Read more
Loans
Bridging loans demystified: Navigating your next property purchase in Australia
Navigating the property market can be daunting, especially when timing issues arise between selling your current home and purchasing a new one. Bridging loans offers a solution, providing the ...Read more
Loans
Ultimate guide to green loans: Financing sustainable home projects in Australia
As Australians become increasingly conscious of their environmental impact, many are turning to sustainable home improvements to reduce their carbon footprint and enhance energy efficiencyRead more
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
Loans
Navigating the Australian student loan landscape: Options for financing your education
Securing financing for post-secondary education is a significant step for many Australians, offering a pathway to advancing career prospects and achieving personal growth. Read more
Loans
Secured vs. unsecured personal loans: Which is right for you?
When considering a personal loan in Australia, one of the first decisions you'll face is whether to opt for a secured or an unsecured loan. Each type has distinct advantages and drawbacks, and the ...Read more
Loans
Weighing up interest-only home loans: What Australian borrowers need to know
Interest-only home loans have become a topic of considerable interest among Australian borrowers, offering a unique approach to home financing. This type of loan allows borrowers to pay only the ...Read more
Loans
Bridging loans demystified: Navigating your next property purchase in Australia
Navigating the property market can be daunting, especially when timing issues arise between selling your current home and purchasing a new one. Bridging loans offers a solution, providing the ...Read more
Loans
Ultimate guide to green loans: Financing sustainable home projects in Australia
As Australians become increasingly conscious of their environmental impact, many are turning to sustainable home improvements to reduce their carbon footprint and enhance energy efficiencyRead more
Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. Read more
Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? Read more
Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. Read more
