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Australian banks to extend mortgage repayment pause by up to four months

11Mo ago 0 Replies 225 Views
Australian banks have today announced that they will allow mortgage holders in severe financial hardship to extend their mortgage repayment pause by up to four months.
However, homeowners may want to consider the alternatives before extending a repayment pause, to avoid the additional cost in the long run

Potential alternatives to pausing mortgage repayments
  1. Use money in your offset or redraw, if available.
  2. Request a rate cut or switch to a lower fixed rate.
  3. Switch to interest-only repayments or reduced repayments for a period of time. While this could increase your rate and/or the overall interest bill, paying something is usually better than nothing.

“It’s great to see the banks are proactively checking in with customers to help them explore their options and make absolutely sure they need to be on a home loan deferral,” she said.
“Yet, the reality is, thousands of families will have no choice but to keep their home loan on hold.

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