Australia’s largest bank will stop automatically offering mortgage holidays to homeowners who are struggling due to the new crown virus pandemic, and major lending institutions have begun contacting tens of thousands of customers who have not yet begun repayment to collect debts. At the height of the new crown epidemic last year, hundreds of thousands of homeowners accepted assistance measures that suspended mortgage repayments due to work stoppages across Australia. At that time, in an emergency decision, in order to prevent homeowners from foreclosure and defaulting on mortgages, the National Bank (NAB), Westpac Bank (Westpac),
Commonwealth Bank (CBA) and ANZ Bank etc. Institutions have agreed to give a wide range of customers a preferential suspension of repayment. But the bank is now preparing to reject the new loan suspension application, and the plan is ready by the end of March. A note from NAB to mortgage brokers stated that it will no longer accept any applications for such mortgage holidays after January 20.
Difficulty assistance measures will be provided in a case-by-case basis, but the existing deferred repayments will not be affected. Mortgage postponement, also called a mortgage holiday, allows borrowers to suspend their usual repayments. During this period, interest and expenses will still accumulate on the loan, resulting in an increase in the outstanding balance. Generally speaking, the loan period will be extended accordingly, so when the borrower resumes repayment, they will be charged the same amount as before the deferred repayment, but need to repay the loan for a longer period of time. Since March 2020, NAB has provided 110,000 mortgage extensions.
The latest data shows that after November, there are still 7,000 mortgage accounts worth 3.6 billion Australian dollars that have not resumed repayment. As of the end of October, 46,000 mortgages were still suspended. According to data compiled by the Australian Banking Association, CBA, Westpac, ANZ, Bank of Queensland, Suncorp and Bendigo Bank, on June 24, a total of 436,139 home loans were suspended. As of December 16, this number has dropped to 90,819.
https://www.smh.com.au/politics/federal/major-banks-to-stop-accepting-covid-19-mortgage-holiday-applications-20210119-p56v5m.html