CBA has announced that it will extend its moratorium on home loan foreclosures as the banking industry comes together to help customers through lockdowns.
Any customers who fall in arrears as a result of COVID lockdowns will be given until February of next year before the bank acts on any foreclosures, an extension on the previous scheme that was set to last until September.
Owner-occupiers who have a year’s worth of timely repayments will be eligible for the support.
“We believe extending our freeze on any foreclosures will give those customers who are again impacted by COVID-19 more time to get back on their feet, and reassurance that they can remain in their home this Christmas and into next year,” said CEO Matt Comyn.
Westpac also extended measures designed to help lockdown-affected customers, with SME clients now able to receive interest free cash flow assistance from the bank. Small businesses can access overdrafts of up to $15,000 for a six-week period, a move that should be able to help them long enough for government assistance to kick in.
“We know that the current lockdowns mean some of our small business customers may need urgent access to cash,” said Westpac CEO Peter King. “We have introduced a new interest free overdraft to act as a bridge to when government payments flow-in, helping small business owners to cover urgent expenses during this time.”
Last Friday, Anna Bligh, the CEO of the Australian Banking Association, announced a national support package for small businesses impacted by the lockdowns in New South Wales and Victoria.
Three month repayment deferrals, terminal fee refunds and fee waivers were just some of the measures introduced.
“As the lockdowns get worse, customers can rest assured that their bank will have their back”, said Bligh.
“Today’s announcement in NSW means more businesses, construction workers and tradies will be unable to work in the coming weeks. If they are struggling financially, the best thing they can do is call their bank.”
“Throughout the pandemic, Australian banks have worked with Government to support those most affected. They're determined to see customers through the worst.”
