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Deferrals skyrocket as COVID-19 sets in
The fallout from the COVID-19 pandemic has seen one in 14 Aussies with a mortgage payment deferral, official figures have shown.
Deferrals skyrocket as COVID-19 sets in
The fallout from the COVID-19 pandemic has seen one in 14 Aussies with a mortgage payment deferral, official figures have shown.
The Australian Banking Association (ABA) has released new figures showing that 429,000 mortgages had been deferred, totalling $153.5 billion. The figures take the total number of loans deferred to 703,000, worth a value of $211 billion.
ABA CEO Anna Bligh said the banks stood shoulder to shoulder with Australians who were suffering as a result of the COVID-19 health and economic crisis.
“Banks are here to support customers throughout the crisis and help the economy on the other side as we recover from the devastating effects of this pandemic,” Ms Bligh said.
“Since this crisis started, banks have deferred the mortgage repayments of 429,000 Australian families or a staggering one in 14 of all home loans.
The statistics released by the ABA follows the Commonwealth Bank tipping falls in house prices could be as severe as 32 per cent, putting a strain on the property sector.
However, Ms Bligh noted that the banking industry will do what it can to help support Australians get back on their feet.
“Australian families who are financially affected by this crisis have had the breathing space they need with a six-month deferral on their home loan repayment while they chart a path through to the other side of this downturn,” she said.
Banks have also hired 1,500 new staff and redeployed over 2,200 staff to frontline areas such as call centres to help meet the historic surge in demand for support over the last few months.
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