Big bank extends moratorium on foreclosures
A major bank has said it will extend its freeze on foreclosures if customers are unable to repay their home loans.
In November 2020, the Commonwealth Bank of Australia (CBA) announced it would extend its break on foreclosures until at least September 2021, due to the continued impacts of the coronavirus pandemic.
The bank announced today (July 19) that it will be further extended.
The extended moratorium will allow homeowner clients who have made their mortgage repayments on time for at least 12 months prior to their postponement, but who are again unable to make their full repayments, to stay in their home until at least in February 2022.
Bank CEO Matt Comyn said: “We believe that extending our freeze on all foreclosures will give customers who are again affected by COVID-19 more time to recover, and confidence that they can stay home this Christmas and the next year, ”Mr. Comyn said. .
The extension of the freeze comes as many banks, including the CBA, offer disaster assistance and loan deferral breaks due to the resurgence of COVID in Australia, which has triggered lockdowns in several states.
The bank stressed that its two-month loan deferral option could be particularly useful for LGAs at Fairfield, Liverpool and Canterbury Bankstown in Sydney – currently under strict foreclosure – and for clients in the construction and retail sectors. at discretionary retail, which were required. close operations as of today (July 19).
“This is a critical time for all of us to come together and support the communities hardest hit by the latest COVID-19 outbreak and the resulting lockdowns,” Mr. Comyn said.
“CBA offers home loan repayment deferrals to affected customers, especially those who need them in areas most affected by blockages. These will take effect from today (Monday July 19, 2021) and I urge any customer who needs our assistance to contact us directly, ”Mr. Comyn said.
[Related: Banks offer nationwide COVID-19 relief]
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Annie Kane is the editor-in-chief of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape, Annie also hosts the Elite Broker and In Focus podcasts and The Adviser Live webcasts. .