The Australian Banking Association (ABA) said the fall in deferred loans are now less than 300,000, which is a sign of Australians “bouncing back” from financial hardships.

“This is an encouraging sign that most Australians are through the worst,” said ABA CEO Anna Bligh.

“Australian banks have played a major role in carrying the economic burden of the pandemic for their customers. The good news is that the majority are now bouncing back as they restart their loan repayments,” she said.

The value of deferred loans by the seven largest banks has now fallen below $100 billion – down to $86 billion. This figure peaked at more than $250 billion in June.

According to the latest data up to 4 November, home loan deferrals by the seven largest banks are down to fewer than 145,000.  

Total business loan deferrals have fallen to fewer than 73,000. SME loan deferrals are down to just over 65,000.   

The number of loans on hold is expected to fall further in coming weeks as more reach the end of their six-month deferrals.

“It’s great to see a lower than expected number of people needing to extend their deferral period,” Ms Bligh said.

The CEO told consumers who are still struggling that the banks will continue to support customers through the pandemic.

“Don’t wait till you are in over your head. Talk to your bank; they’ll help you find a way through this. Don’t tough it out on your own,” Ms Bligh concluded.