If you have personal or business lending then please read this
Most lenders have now released their support packages. Details of these can be found on the Australian Bankers Association link below. Click on the logo of your lender to be taken to their dedicated page. Contact us for any concerns or if your bank is missing so we can check on the details for you.
https://www.ausbanking.org.au/campaigns/financial-hardship
APRA who regulates the Banks has ruled – Where a borrower who has been meeting their repayment obligations and takes up the offer not to make repayments as part of a COVID-19 support package, the bank need not treat the period of the repayment holiday as a period of arrears. Similarly, loans that have been granted a repayment deferral as part of a COVID-19 support package need not be regarded as restructured.
The important part we need to stress is that you need to do this under lenders approval for it to not impact your credit score. If you simply don’t make your repayments you will be in breach of your loan agreement and run the risk that your credit rating will be adversely impacted. TALK TO YOUR LENDER FIRST
If you are in a position to meet your repayments we encourage you to do so if this doesn’t cause hardship. Loan deferment is being called a “repayment holiday” in some media. This is misleading. A $100,000 loan over 20 years with 6 months repayments deferred will grow to $102,500 over 6 months. Based on the same 20 yr loan term total repayments will increase by more than $4,000.
If you need the assistance, don’t hesitate to take it, but get approval for it upfront