Most mortgage relief recipients still taking COVID-19 repayment break

Just one in 10 cash-strapped borrowers who took a COVID-19 mortgage break from repayments to the big four banks have exited the payment relief program.

The Australian Banking Association confirmed many Australians are unwilling to make any repayments.

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).

The ABA’s chief executive, former Queensland premier Anna Bligh, said there was "a very long road and plenty of hurdles to clear." 

Customers were initially given repayment deferral for up to six months, but banks are set to offer further extensions.

Tags: 
Home Loans COVID-19

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