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1 in 2 Aussies begins mortgage repayments
Nearly half of all Australians who took a mortgage holiday are beginning to repay their debts, new research has revealed.
1 in 2 Aussies begins mortgage repayments
Nearly half of all Australians who took a mortgage holiday are beginning to repay their debts, new research has revealed.
Numbers released by the Australian Banking Association (ABA) showed that from seven of Australia’s largest banks, as of last week, the number of deferred mortgages had dropped to 270,000, meaning repayments had resumed on at least 224,000 loans.
In total, 45 per cent of deferred mortgages are back to making regular loan repayments.
“This is a good sign for the economy. It shows that more Australians are getting back on their feet and resuming their loan repayments,” said Australian Banking Association chief executive Anna Bligh.
Australian banks provided a loan repayment deferral to around one in 11 Australian mortgage-holders and to one in eight small-business owners to provide some breathing space during the worst of the COVID-19 pandemic.
“These loan deferrals have helped hundreds of thousands of Australian families and small businesses survive the pandemic,” Ms Bligh said.
Repayments have resumed on at least 82,000 small and medium business loans. This means two in five (41 per cent) small and medium business loans that had been deferred are now being repaid again.
Now, six months after the introduction of deferrals, repayments have resumed on almost half of the deferred loans.
In just the past month, as customers came to the end of their six-month deferral, more than 130,000 mortgages and 50,000 SME loans had their repayments resumed.
According to the data from Australia’s seven largest banks, the total number of deferred loans has dropped to 439,000.
“Right now, it’s really important that people contact their bank to figure out the path ahead. The earlier you speak to your bank, the more options they have to help you find a way through,” Ms Bligh said.
“Banks will work with customers to figure out a tailor-made solution. That might include restructuring a loan, or in some cases, granting an additional four-month deferral.”
“If you are in financial difficulty, please call your bank, they can help you find a way through. Don’t tough it out on your own.”
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