Are banks freezing mortgages?
The big four banks have all announced that their customers will be able to pause mortgage payments.
Some banks explicitly state only customers affected by coronavirus will be eligible to pause their repayments. But whether you need to provide proof (such as a doctor's note or severance form) to verify you have been affected by coronavirus depends on which bank you're with.
If you're with Commonwealth
- You will be able to defer home loan repayments for up to six months
- Interest will be capitalised
- Interest and charges will be added to your loan balance
- Your loan balance will be recalculated at the end of the support period
- Your loan term will be extended so repayments stay the same as they were before you started the deferral
If you're with Westpac
- You will be able to defer repayments for three months
- A three-month extension is available after review
- This option is for people who have lost their job or income as a result of coronavirus
- Deferred interest will be capitalised, so your repayments will increase for the remainder of your loan term
If you're with ANZ
- You may be able to put your repayments on hold for six months
- Interest will be capitalised
- The bank will check in with you after three months
If you're with NAB
- You will be able to defer your repayments for up to six months
- There will be a three-month checkpoint with the bank
- You are eligible if you are a home loan customer affected by coronavirus
- This applies for owner-occupiers, investors or those on a principal and interest or interest only repayment schedule
- You will still be able to redraw during the repayment pause
We strongly urge to you to contact your bank if you have any queries.
Article posted Thursday 26th March, 2020
Source: ABC News