Banks to offer further extensions on home and business loan repayments

Australians struggling financially have been given another small lifeline from banks, with further extensions on loan repayments.

On top of the six month deferral periods already in place until September, those still unable to make payments will be given the option of another four month holiday.

But banks are warning that the extensions will not be applied automatically.


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Anyone who can afford to start repaying their mortgage or business loan will still be expected to when the initial deferral period ends.

Federal Treasurer Josh Frydenberg told the ABC this morning that it will be a very welcome step for some.

For some people, if the business is closed and if they have a commercial loan, then there would be cases where the customer would need to talk to their bank and I understand that the bank is going to be very supportive of their customers.

“I mean, the initial 6-month loan deferral period has been very helpful. Some $266 billion in loan payments have been deferred. 

“About 800,000 customers, and 60% have been residential mortgages.

“So the decision by the regulator and by the banks to have this extended for another four months is very welcome,” Mr Frydenberg said.

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