NAB to extend deferral period.
In early April the banks allowed their borrowers to defer mortgage repayments. That deferral is soon ending, and NAB is the first to offer an extension to deferrals. This extension will no doubt be a life saver for over 100,000 families Australia wide. Federal Treasurer Josh Frydenberg welcomed the announcement.
“If somebody’s lost their job and they’ve got a residential mortgage or indeed if their business has been closed and they’ve got a commercial loan, then they would be cases where the customer would need to talk to their bank, and I understand it that the bank is going to be very supportive of their customers,” he said.
This news comes just in time to avoid the feared ‘economic cliff’ that was expected to occur due to the coinciding end to the government’s and the major bank’s support systems. Just recently, I wrote an article exploring the impacts of the the end of JobKeeper/JobSeeker and the end of the mortgage deferral period which are both slated to end at the beginning of September.
Thankfully, NAB has decided to extend the period of loan deferrals for its home loan and business loan customers affected by COVID-19. This deferral, ending no later than the 31st of March 2021 will provide Aussies the option to continue deferring their mortgage repayments to a later date.
Customers must opt-in for the extension. NAB will contact those of you who have deferred your loans and confirm with you whether you need an extension to your loan. If you do not, your loan will not be extended.
While this is welcome news for the significant number of Aussies struggling to cope with the financial impacts of COVID-19, if you are lucky enough to be able to afford your mortgage, we recommend that you choose to continue making payments, as interest will continue to accrue during the deferred period, costing you more in the long term.
If the COVID-19 crisis is affecting your financial situation, please get in touch so we can formulate a plan to manage your loan repayments during these unprecedented times.
If you believe you are at risk of defaulting please read this article on protecting your Credit Score.
With lenders continuing to offer very competitive rates, we can help review your situation to ensure you have the right loan for your circumstances.
If you’d like to chat about the best way to manage your mortgage as the COVID-19 crisis continues to unfold, please don’t hesitate to give us a call.
We are more than happy to help anyone experiencing hardship, please contact us at 08 8216 4111