Banks Revising Their Hardship Policy For Home Loans

Due to the economic down turn, Australia’s major banks are revising their policy for home loan customers that are experiencing financial difficulty.

The banks are looking to extend their repayment holiday policy. This means that a customer experiencing financial hardship will not have to make mortgage repayments for the specified term. However, the intrest on the loan is capitalised (added to the loan) and repayments will commence as soon as the period has ended.

Commonealth Bank announced that they can provide an extra 6 month home loan repayment holiday which can now be extended up to 12 months. ANZ said they are looking at a similar offer.

Westpac said it also offers repayment holidays along with a range of measures that can help their customers for many years while NAB assess their customers on a case by case basis.

If you are experiencing financial hardship it is important to contact your lender early. They can implement measures that can save you from defaulting on your loan and help reduce mortgage stress.