Commonwealth Bank proudly initiates new policy for its home loan customers, which it calls “a first for Australians”.
Titled ‘Home Loan Compassionate Care’ this new initiative provides a 12 month buffer zone protecting owner-occupied homeowners in the unfortunate event that, their spouse or a dependent passes away or is diagnosed with a terminal illness, by covering their repayments.
A research study conducted by CBA revealed that a third of Australians are currently financially unable to cover repayments past the 6 month mark should they, a spouse, or dependent suddenly pass or be diagnosed with a terminal illness. While a further; one in 10 would only be able to cover repayments for one month or less based on current income and savings.
“We know that mortgage repayments are the single biggest financial commitment for Australian homeowners, so when so when the unthinkable happens we’ll support our customers by making their home loan repayments for around 12 months at no cost”
“We’re proud that together with AIA we have been able to deliver this Australian-first for new home loan customers and will be making it available to our existing customers at no cost to thank them for their loyalty.the unthinkable happens we’ll support our customers by making their home loan repayments for around 12 months at no cost,” said Angus Sullivan, group executive of retail banking services.” – Angus Sullivan, group executive of retail banking services.
The research also showed that the majority of Australian homeowners do not have a backup plan in place for these circumstances. A contributing factors is the lack of conversation around these disheartening subjects, as over half of partners have not had a conversation regarding their ability to meet mortgage repayments if they lost a significant portion of their joint income.
“If something were to happen, the last thing you should have to worry about is your home loan. In designing this protection, we’ve made sure there’s no need to sign up or to activate it”
“We’ve also consulted with our own employees who have gone through similar, difficult experiences to ensure the end-to-end claims process is as easy and stress-free as possible, and a dedicated team has undergone specialised training to handle these sensitive matters.”
Home Loan Compassionate Care is available for eligible owner-occupied home loan customers aged between 18 and 59 years.