Mortgage help for those affected by job loss

by InsideFinance 19/03/2009

 Mortgage help for home owners

 Mortgage repayments for anyone who looses their job can be deferred for up to 12 months, says the Commonwealth Bank of Australia.  Anyone who currently has a mortgage with the nation's biggest lender can apply for the deferrals.

The aim is to stop homeowners falling into arrears and forcing the sale of homes.  CBA chief executive Ralph Norris met with Wayne Swan to discuss the measures banks could take to assist families hit by unemployment during this recession.

"In the case of those unfortunate to be unemployed, we will provide repayment holidays for six months, and in some circumstances up to 12 months, with interest being capitalised," he said. Mortgage holders will ultimately have to pay the deferred payments, plus interest.

 

Predictions that the jobless rate could reach a peak of 7 per cent late next year are troubling many and the CBA has moved to protect the homes of the unemployed.

Mr Norris added that he could not rule out job losses at CBA because of deteriorating economic conditions.

Deferrals for home loan payments would be assessed on a case by case basis, said the bank.



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source: The Australian
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