Home owners plough cash into mortgages during lockdown (AFR)

Voluntary payments into mortgages more than doubled in July, August and September from the previous 12 months, data from non-bank lender Firstmac shows, raising the question whether consumers will save, rather than spend, extra cash handed to them in last week's budget.

Firstmac's analysis of its direct retail mortgage book shows the level of additional payments made by borrowers jumped to an average 10.2 per cent of the portfolio in the past three months, compared with the monthly average payment of 4.8 per cent last year.

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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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