Westpac rolls out interest-free home loans to assist bushfire victims
Earlier this week, Westpac announced it will be granting additional support to customers who have been impacted by the bushfires currently spreading across New South Wales and Victoria.
As part of its Bushfire Recovery Support Package, the bank has earmarked $250 million to provide interest-free home loans to customers who have lost their homes.
The loans will be subject to Westpac’s credit criteria, and intend to cover the difference between insurance payouts and rebuilding costs.
Westpac has also said it will assist existing mortgage customers whose properties have been destroyed by covering one year’s worth of home loan repayments, capped at $1,200 a month. One-off emergency cash grants of up to $2,000 will also be available.
Peter King, Acting Chief Executive of Westpac Group, spoke of the need to help customers and communities overcome the challenges they currently face and take steps towards recovery.
“These initiatives are designed to provide practical, on the ground support for our customers, our people and for those who are caring for affected communities,” he said.
“In times of such unprecedented devastation, we want customers and communities to know we’re here to help alleviate financial concerns so they can rebuild their lives, homes and businesses.”
Business customers to also receive help
Businesses that have suffered property damage will also be eligible for assistance. Westpac has allocated $1 billion to provide low interest loans for rebuilding purposes. The current variable rate on these loans is 2.83% p.a. — much lower than the big four average of 3.44% p.a.
Grants of up to $15,000 will also be available to help small businesses cover the cost of refurbishing premises that have been destroyed by the bushfires. Westpac customers whose business premises have been destroyed could also access up to $2,000 in emergency cash grants.
Finally, the bank has announced that there will be no foreclosures on any farming businesses located in affected areas for the next three years.
Westpac isn’t the only provider taking steps to assist bushfire victims. Browse our guides for more in-depth looks at the emergency relief packages being offered by Australian banks and energy retailers.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.