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All of the 144 Australian retail banks, building societies and credit unions have signed up to the government’s mortgage relief plan, which aims to support borrowers facing employment hardship.
Treasurer Wayne Swan yesterday announced that all members of Abacus and the Australian Bankers Association (ABA) had signed up to the government’s “Principals”, following the big four banks, who signed up in April.
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“I congratulate ABACUS, ABA and all of their members for working cooperatively with the government on behalf of their customers,” he said.
“These Principles will ensure that families finding it tough to payi off their mortgage in the face of the global recession are fairly treated by their bank, building society or credit union.”
Under the Principles borrowers will be offered such options as postponing mortgage repayments for up to 12 months, an extension of their loan contract, interest-only breaks on loan repayments and fee waivers.
“These options won’t be appropriate in every case,” Mr Swan said, with lenders to make assessments on each borrower’s ability to meet new contractual obligations in the long-term.”
