Homeowners are rethinking ways to cope with job loss and potential job loss due to COVID-19 restrictions, with banks offering several options now for mortgage support.
Homeowners are rethinking ways to cope with job loss and potential job loss due to COVID-19 restrictions, with banks offering several options now for mortgage support.

Coronavirus: Banks move to stem mortgage fallout

A new survey has found that almost half of Queenslanders have had their incomes cut or soon to be cut because of COVID-19, with concern for mortgages now.

The Queensland figure (49 per cent) is higher than the national average (45 per cent), according to the results of the research released by financial comparison service comparethemarket.com.au.

It asked respondents if they were losing income because of social restrictions, and changes they would make to their finances as a result, including mortgage repayments.

Homeowners are rethinking ways to cope with job loss and potential job loss due to COVID-19 restrictions, with banks offering several options now for mortgage support. The survey found that two in every five Queensland respondents (40 per cent) were concerned about meeting mortgage repayments for the rest of the year.

The housing market can expect to see some fallout on mortgage repayments due to income loss in Brisbane and across the wider state. Picture: Liam Kidston.
The housing market can expect to see some fallout on mortgage repayments due to income loss in Brisbane and across the wider state. Picture: Liam Kidston.

As well, 13 per cent said they or their partners had lost their jobs in the Sunshine State, and 7 per cent thought they or their partners were would do so.

Almost one in five (19 per cent) of Queenslanders or their partners had also taken a pay cut during this period, while one in 10 believed a pay cut was looming.

Among the measures being taken to cope were families freeing up cash by deferring loan or credit card repayments, accessing cash by withdrawing from their super, term deposits or life savings.

Comparethemarket.com.au spokeswoman Abigail Koch said there were hundreds of thousands of Aussies

"Hundreds of thousands of people are experiencing financial hardship at this time, with around six million workers expected to receive JobKeeper payments, while many others are uncertain about their financial security. "

 

 

"The Government and financial institutions have introduced a range of relief measures to help Aussies under financial pressure, stay afloat during these difficult times."

She said the firm had created a COVID-19 FAQ Hub to cope with demand for information on how the pandemic could affect home loans, credit cards, insurance and a range of other household costs.

HOME LOAN SUPPORT BANKS ARE OFFERING:

Commonwealth Bank

- Home loan repayment deferrals for six months but interest and fees will be added.

- One-time payment to offset any interest charged, depending on your balance and interest rate.

Westpac

- A three-month deferral on mortgage repayments, with a three-month extension after review

- Ability to redraw funds from your home loan if you're ahead on repayments

- Ability to switch to interest-only repayments

ANZ

- Deferral on home loan repayments for six months, with a three-month check to see if further assistance is required

NAB

- Pause on home loan repayments for up to six months

- Ability to change your home loan repayment amount if you are ahead on repayments

- Lower interest rates (between 2.29-2.79 per cent) when you apply for a new fixed-rate Choice Package loan

Banks are open to discussions now with anyone who has concerns over income loss impacting mortgages.
Banks are open to discussions now with anyone who has concerns over income loss impacting mortgages.

Suncorp

- Repayment deferrals for three months, with a three-month extension after review

- Ability to switch to interest-only repayments

- Get cashback (up to the value of your advance repayment minus the value of one-month repayment)

St George

- Three-month deferral on repayments, with three-month extension after review

- New fixed rate home loan of 2.29 per cent for one, two or three years for new owner-occupied lending (principal interest repayments with Advantage Package)

- Redraw funds if ahead on repayments

- If loan is more than 12 months old, reduce repayments to the minimum required, or change frequency of repayments if you pay via direct debit

Bankwest

- Six-month repayment deferrals

- Complete Fixed Home Loan Package (for owner-occupiers paying principal and interest) reduced to three-year fixed rate of 2.33 per cent. (for both new and existing customers)

- Redraw without incurring fees if extra repayments have been made

 

 

HSBC

- Defer loan repayments for up to six months, with a review after three months

- No fees for existing home loan customers who switch from standard variable rate to fixed rate loan

- A 0.50 per cent reduction to 2.25 per cent.in one, two and three-year Premier fixed rate home loans (for owner-occupiers paying principal and interest)

AFG

- Repayment relief for up to six months

- Fees waived for restructuring a loan or consolidating loans

- Temporarily convert to interest-only repayments

Liberty

- Ability to defer loan repayments

- Fees waived for restructuring a loan

- Credit card support

-Financial institution

FOLLOW SOPHIE FOSTER ON TWITTER

 

Originally published as Coronavirus: Banks move to stem mortgage fallout



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