Home buyers unable to resume normal repayments beyond the loan deferral deadline at the end of September may be forced to opt into higher interest-accruing loan products to avoid the possibility of losing their property while money is tight.
Commonwealth Bank, Westpac and NAB have all confirmed interest-only rates would be higher than what would be offered if a customer remained on principal plus interest repayments. “These customers should be getting a rate cut, not a rate hike. Asking people to pay more interest when they are in financial distress doesn’t seem fair or reasonable.”
“The banks have been told by ASIC to be fair and flexible in their negotiations, and to help people stay in their home if it’s in their best interests,” she said.According to RateCity research, a mortgage holder owing $400,000 who chose to move to interest-only after the six-month deferral period would pay an extra $13,729 over the life of a 25-year loan.
The only reason we care is because everyone had been shooting up on easy junk credit...now everyone has a 1.5m habit...becoming sober has always been painful...
The big 4 bank want their money back , at a time when our caring Federal Government is reducing Job Keeper and Job Seeker 😥 We are not all in this together 😥
This is so true! Banks are running riot
They don’t give a fk. No return calls if you can even get through.
Banks dont care. They'll take all your money & your property too.