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iSelect Editorial TeamSome banks and lenders are offering ‘mortgage holidays’ of up to six months to customers experiencing financial pressure related to the coronavirus pandemic, such as reduced income or loss of employment.[1] If you are experiencing difficulty meeting your mortgage repayments, reach out to your lender to discuss what hardship options may be available to you as soon as possible.
[1] Source: https://www.abc.net.au/news/2020-03-26/are-banks-freezing-mortgages-banks-putting-payments-on-hold/12090642
Lasted Updated: 23/04/2020
A mortgage holiday doesn't mean you skip payments but rather defer them to a later date. You should check with your lender as to how your loan repayments and loan term might be impacted.
Lasted Updated: 23/04/2020
It’s understood that lenders may continue to allow customers to make voluntary home loan repayments even if they have opted into a mortgage holiday, however you should check with your lender to see if this is available for your circumstances.
Lasted Updated: 23/04/2020
Generally, banks and lenders will consider requests for home loan deferment on a case-by-case basis, with the criteria and hardship options available varying between lenders. However, it’s worth noting that many lenders may have relaxed their criteria for financial hardship due to the coronavirus pandemic. Generally speaking, if you have experienced a reduction or loss of income related to coronavirus which is causing financial hardship, you may be eligible for a mortgage holiday. It is important that you reach out to your lender to discuss the options available to you.
Lasted Updated: 23/04/2020
This depends on your lender. Some banks may continue to allow re-draw facilities while others may not. Please reach out to your lender for clarification.
Lasted Updated: 23/04/2020
Some banks may allow you to reduce your mortgage repayments, rather than deferring but this will depend on the lender and will likely be decided on a case-by-case basis. Please reach out to your lender for clarification.
Lasted Updated: 23/04/2020
Variable interest rates are at record lows at the moment so for some customers it may be a great time to take advantage of lower variable rates, while others will appreciate the peace of mind that comes from a fixed interest rate during these uncertain economic times. Everyone's situation is different which is why it could be a good idea to discuss your own situation with your lender or mortgage broker.
Lasted Updated: 23/04/2020
If you or your partner lose their job (or income is significantly reduced), speak to your mortgage broker or lender to understand the impact this may have on the final approval and your ability to borrow and pay off a home loan.
Lasted Updated: 23/04/2020
Speak with a mortgage broker or your lender to see if this is suitable for your circumstances.
Lasted Updated: 23/04/2020
No, opting into a ‘mortgage holiday’ will not impact your credit rating.[1]
[1] Source: https://www.ausbanking.org.au/covid-19-relief-faqs/
Lasted Updated: 23/04/2020