Banks “stand ready to help” people with home loan problems
The Australian Banking Association (ABA) has launched a campaign encouraging borrowers struggling with loan repayments to seek help, in a valuable reminder there are options available if you're finding it hard to keep up with your mortgage.
Your bank may be able to:
- Reduce your home loan repayments.
- Pause your repayments temporarily.
- Switch your repayments from principal and interest to interest-only temporarily.
- Increase the length of your loan (thereby reducing the repayments).
ABA CEO Anna Bligh said banks understood many borrowers were facing challenging circumstances.
“Banks stood by their customers during the COVID-19 pandemic, deferring payments for people who for the first time in their lives found themselves unable to pay. Banks stand ready to help people again now,” she said.
“People who are finding their finances are stretched should not feel they have no options and they have to do it on their own. Banks have dedicated, highly experienced teams ready to help.”
As your broker, I'm also here to help. You're welcome to contact me for advice;I can then speak to and negotiate with your lender on your behalf.
The key thing is to move fast, because the further you get ahead of the problem, the more flexible and helpful banks tend to be.