Banks urged to 'flex' as Victoria battens down the hatches (AFR)

Data on loan deferrals released by the prudential regulator and by Firstmac provided new insight into the $274 billion worth of frozen loans as of the end of June, which was 3 per cent higher than a month earlier. 

Before the tougher Victorian lockdown was introduced, Firstmac had seen a steady improvement in the number of customers with deferred loans. The number with fully or partially suspended repayments had fallen to 5.1 per cent at the end of July from 5.65 per cent on May. 

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02 Jul 2020

Fewer homeowners seeking mortgage relief as economy recovers (The Australian)

The number of mortgages on suspended repayments through COVID-19 hardship measures is declining, with some homeowners opting to begin paying down their debt earlier.

Non-bank lender Firstmac and the major banks have told The Australian that the number of customers asking to defer their mortgage repayments has cooled off in the past month, as economic conditions across the nation improve.

ABA chief executive Anna Bligh said banks were contacting customers who had accessed financial assistance to discuss further options after the initial suspension period.

“Encouragingly, banks are seeing that many deferred customers are choosing to resume making loan repayments,” Ms Bligh said.

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