Borrowers who paused their mortgages for six months when the coronavirus crisis started are facing a moment of truth.
Those deferrals are scheduled to end soon – and, when they do, borrowers may be expected to resume paying off their mortgage.
If you’re still in difficulty, your lender will speak to you about your options.
This may include offering you another four-month extension. Alternatively, your lender might suggest ways to reduce your monthly repayments, such as:
- Extending your loan term
- Shifting to interest-only payments
“Customers who will be unable to pay their loan over the longer term will be offered tailored assistance that addresses their needs,” according to the Australian Banking Association.
More than 900,000 loans have been deferred since we entered lockdown six months ago, with hundreds of thousands of assessments due in the coming weeks:
- 80,000 mortgages and 65,000 business loans by the end of September
- 180,000 mortgages and 40,000 business loans by the end of October