Number of still-deferred mortgages approaches zero

Person marking a date on a calendar.

The number of Australians on mortgage holidays continues to dwindle, with the latest data from the Australian Banking Association revealing that just 3,170 customers with the big four banks and Suncorp have yet to resume their repayments.

The total number of deferred mortgages peaked at 854,606 as households weathered the country’s first recession in 30 years. By the program’s end on 31 March, the percentage of still-deferred mortgages had shrunk to 0.7 per cent.

As a percentage of the sample banks’ mortgage portfolio, outstanding loans represent just 0.07 per cent.

The picture for Australian businesses is even more encouraging. From a peak of 235,440, the number of deferred business loans fell to 508 by 31 March, meaning 0.2 per cent of all deferred loans remain that way.

For Australian Banking Association CEO Anna Bligh, this is a clear sign that borrowers are on stable footing as the country emerges from recession.

"These figures reflect the impressive recovery Australia's economy is experiencing after facing a one-in-100-year pandemic," she said.

"The fact that unemployment is lower than expected and the economy has rebounded faster than we anticipated is great news for the vast majority of homeowners and small businesses."

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While the industry-wide deferral program has formally ended, Bligh reminded Australians still struggling to service their loans that more help is available. Depending on circumstances, this could include further deferral or restructured payments.

"Banks will continue to support those households and businesses still doing it tough this year, taking a fair and compassionate approach to get people through the pandemic," she said.

For more information on lending trends, head over to our home loan statistics page. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 21 January 2022

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