The banking industry has vowed there won’t be a sudden wave of foreclosures from next month, once the emergency scheme that allowed struggling customers to freeze their loan repayments ends. The Australian Banking Association will on Thursday say 91 per cent loans that were deferred last year in response to COVID-19 had now resumed repayments, ahead of the scheme wrapping up next month.
In line with trends reported by major banks this month, the ABA said only 13 per cent of housing loans and 5 per cent of business loans on deferral were yet to resume repayments.
ABA chief executive Anna Bligh: “No one is going to wake up on the 1st of April to have their house foreclosed on.” Credit: Alex Ellinghausen
ABA chief executive Anna Bligh said people who could not resume repayments would move into the next phase of support, which would involve hardship arrangements designed for individual customers’ needs.
