Tens of millions of Australians are currently affected by the extended lockdown restrictions in New South Wales and Victoria, many of whom will be unable to work or earn an income during lockdown. Along with a host of Government support packages targeting those businesses impacted by a loss of earnings, lenders are stepping up to assist their customers affected by tightened lockdown restrictions. Read on to find out what support may be available to you.
Ready to assist
CEO of the Australian Banking Association, Anna Bligh has reassured homeowners that, once again, banks are preparing to assist those customers affected by ongoing lockdown restrictions.
“As the lockdowns get worse, customers can rest assured that their bank will have their back”, said Australian Banking Association CEO Anna Bligh.
“Throughout the pandemic, Australian banks have worked with Government to support those most affected. They’re determined to see customers through the worst.”
Earlier in July, the ABA announced a national support package targeting small businesses and home loan customers throughout Australia, which includes:
Business banking repayment deferrals
- Up to 3 month repayment deferrals, with loan terms extended accordingly
- Offered to all small business customers (business lending less than $3m and a turnover of less than $5m), which includes up to 98% of small businesses
- Only for loans in good standing (i.e. repayments up to date or engaged in a payment program with their bank)
Everyday banking support
- Refunds of merchant terminal fees for up to 3 months
- Waiving of fees and notice periods on Cash Deposit and Farm Management Deposit accounts for up to 3 months
Home loan support
- Range of support measures, including deferrals on a month by month basis
- Available to both individual and business customers
“These options do give people a breather, that’s what they’re designed to do, just take the load off for three months, while you get through everything else that you need to get through”, said Ms. Bligh.
Getting support early
While the uptake for support has been much slower than that experienced in 2020 during the height of the COVID-19 pandemic, several banks are reporting more customers calling into their helplines. Many of these customers are unsure how to proceed, having no experience or understanding of mortgage deferrals.
If you are concerned about being unable to meet your mortgage repayments during the extended lockdown, please get in touch with your lender as soon as possible to find out what support is available to you. Alternatively, get in touch with a Mortgage Express mortgage broker who can help you work through your financial options and help you find a solution.
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