Updated figures from the Australian Banking Association (ABA) reveal that 1 in 14 mortgages across the country have now been deferred as a result of the fallout from COVID-19.
Released on Saturday, the new figures show that nearly 429,000 mortgages totalling $153.5 billion have now been deferred, which is a 10% increase since the ABA’s last update earlier this month.
According to the ABA, that takes the total number of loan deferrals (including business loans) to 703,000 since the COVID-19 pandemic began, worth approximately $211 billion.
“Since this crisis started banks have deferred the mortgage repayments of 429,000 Australian families or a staggering one in fourteen of all home loans,” said ABA chief executive, Anna Bligh.
“Australian families who are financially affected by this crisis have had the breathing space they need with a six month deferral on their home loan repayment while they chart a path through to the other side of this downturn.”
While the temporary repayment relief may be welcome for many financially-hit households, it’s worth remembering that unpaid interest which accrues during this period will still be added to the outstanding balance of the loan. The same may also be the case for any regular fees.
In addition to loan deferrals, Australian banks have also rolled out a number of other assistance measures in response to COVID-19 including fee waivers, rate reductions, loan consolidation and more.
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For more COVID-19 information, including for mortgage holders, businesses, savers and travellers, we’ve pulled together a host of resources on everything you need to know about coronavirus and your finances.