Government Mortgage Rescue

Government, banks join forces on mortgage rescue plan

The Federal Government has struck a deal with the major banks to help people who have lost their job and are struggling to pay the mortgage. Banks will postpone home loan repayments for up to 12 months for people in hardship

The Australian Bankers Association’s David Bell says the Commonwealth, NAB, Westpac and ANZ banks will postpone home loan repayments for up to 12 months for people in hardship.

“We’ve recently agreed with the Government to a series of expanded options to help our customers if they experience financial hardship through unemployment or other circumstances,” he said.

Mr Bell says other measures which the banks will consider include extending loan contracts, reducing repayments or waiving fees.

“Each will be individually tailored for the particular customer, but they could be extending the period of the contract on the loan,” he said.

“It could be reducing the limits available to customers on credit contracts and it could include repayment holidays, but it’s up to the individual circumstances of the customer.”

Interest-only repayment options may be available on other types of loans.

Prime Minister Kevin Rudd is expected to release more details about the package at a forum in Melbourne today.

Mr Rudd has arrived back in Australia after a two-week overseas visit to the United States and Britain for the G20 summit.

Source ABC Online

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