Almost half of deferred loans are now being repaid again as Australians recover from the COVID-19 pandemic, according to data from the Australian Banking Association (ABA).
In late June, the number of loans which were deferred by homeowners and businesses peaked with around 500,000 mortgages and 200,000 small business loans having paused repayments.
In the past month as customers came to the end of their six-month deferral, more than 130,000 mortgages and 50,000 small to medium enterprise (SME) loans had their repayments resumed.
Anna Bligh, ABA chief executive, said it was important that people contacted their bank to figure out the path ahead.
“The earlier you speak to your bank, the more options they have to help you find a way through”, Bligh said.
“Banks will work with customers to figure out a tailor-made solution. That might include restructuring a loan, or in some cases, granting an additional four-month deferral.”
“If you are in financial difficulty, please call your bank, they can help you find a way through. Don’t tough it out on your own.”
However, data from seven of Australia’s largest banks showed the number of deferred mortgages dropped to 270,000.
Repayments had resumed on at least 82,000 small and medium business loans, which meant 41% that were deferred are now being paid again.
“It shows that more Australians are getting back on their feet and resuming their loan repayments,” Bligh said.
“These loan deferrals have helped hundreds of thousands of Australian families and small businesses survive the pandemic.”
Banks had provided a loan repayment deferral to around one in 11 mortgage holders and one in eight small business owners.
