Only 13% of deferred housing loans yet to resume repayments

From the four major banks, 78,556 loans remain deferred

Only 13% of deferred housing loans yet to resume repayments
Only 13% of deferred housing loans yet to resume repayments

Just 13% of deferred housing loans are yet to resume repayments, according to new data from Australia’s largest banks.

From the four major banks, 78,556 loans remain deferred. 60,562 are housing loans, 11,263 are business loans, and the remainder are a mixture of personal loans and credit cards.

Australian banks will continue to help customers and businesses turn the corner after the pandemic, stating they will provide a fair and compassionate approach to those who can’t get back on their feet.

There is a  new Financial Assistance Hub at  developed in collaboration with consumer groups including Financial Counselling Australia and the Rural Financial Counselling Service, as well as the Australian Small Business and Family Enterprise Ombudsman, the Australian Financial Complaints Authority and the Australian Securities and Investments Commission. 

At the peak of loan deferrals in June 2020, Australia’s banks had deferred almost one million loans.  

At January 31, total outstanding deferrals are just 9% of all loans that were deferred.  

Just 5% of small business loans remain deferred and 13% of housing loans.   

On the books of the 4 majors, just 0.7 % of all small business loans, 1.4% of housing loans, and 0.5% of all loans are currently deferred. 

“Banks are taking a careful and measured approach that takes into account every customer’s individual circumstances”, said Australian Banking Association CEO, Anna Bligh.

The next phase of support will involve assistance from specialised hardship teams for customers who are unable to make reduced repayments or restructure their loans. 

“Customers can expect a thoughtful and compassionate approach, with clear and transparent explanations, regardless of who they bank with. This step-by-step guide will help customers navigate the path out of the pandemic.” 

“This is about ensuring that no customer is left in the dark as we emerge from the pandemic. It represents a compact between banks and their customers as we navigate the uncertain path ahead”, Ms Bligh said.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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