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Real Estate Enthusiast, Sydney

Australian banks have begun reviewing their customers who have deferred their home loan repayments

1Mo ago 0 Replies 32 Views
After COVID-19 bit into the Australian economy, thoughts predictably turned to its property market.

Sky-high prices had helped the country accumulate staggering levels of household debt. Now, seemingly out of nowhere, a recession – Australia’s first in three decades – threatened to properly challenge that status quo.
The country’s big banks quickly went into bat for the government, agreeing on hardship programs that would allow homeowners in need to defer their repayments for three to six months.

At the same time, 485,065 mortgages (or $176 billion worth) remain frozen but will eventually need to be paid back. Add in business loans, and the clock is ticking on $237 billion in debt.
The Commonwealth Bank, Australia’s largest, holds nearly $450 billion in home loans, making it a relatively good barometer for where the market is at.

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