Alarming number of home loan customers are still unable to pay
ONLY one in 10 cash-strapped borrowers who took out a mortgage holiday with the nation’s big four banks have exited the payment relief program, alarming new figures show.
New data released by the Australian Banking Association shows many Australians are unable to make any repayments on their loans despite just two months remaining on many of the repayment breaks.
About 485,000 mortgages have been deferred in Australia with the nation’s largest seven banks, including the
Commonwealth Bank, National Australia Bank, Westpac, ANZ, Bendigo and Adelaide Bank, Suncorp and Bank of Queensland.
But new data released by the big four banks found that in May and June:
• About 75,800 customers on mortgage deferrals had exited the repayment holiday program (9 per cent).
• About 50,000 are making partial repayments and 62,500 are making full repayments (15 per cent).
ABA chief executive Anna Bligh said there was still a long way to go for customers experiencing financial hardship, but it was pleasing to see some customers slowly getting back on their feet.
“There’s a very long road and plenty of hurdles to clear but it’s encouraging to see homeowners returning to paying down their mortgages,” Ms Bligh said.
“These figures show there are some green shoots emerging in our economy and that’s a positive sign.”
Treasurer Josh Frydenberg said the loan deferral programs had given hundreds of thousands of Australians muchneeded financial relief.