Banks urged to show 'forbearance' to customers amid house price fears

Banks have been urged to show leniency towards struggling customers amid fears home foreclosures could spark a confidence-sapping property price plunge.

"It is certainly not indefinitely," Mr Comyn said, "but the idea would be there is enough flexibility that we have within the financial system and with the regulators to at least provide up to another four months around repayment deferrals going into calendar 2021." Dr Kennedy urged Mr Comyn and other bank chiefs to show "forbearance" amid continued uncertainty about the economic outlook. "I think the banking sector is going to have to think very carefully about that, too, because some sectors may well be viable depending on how the health side of things unfold … Matt will have to be thinking about his customers in Victoria versus other states and how their circumstances unfold.

According to the Australian Banking Association, payment deferrals have been granted on 900,000 loans during COVID-19. By the end of July, 13 per cent of these had resumed repayments. Another 100,000 restarted in August, it is estimated, leaving more than 600,000 loans still in limbo.

Source: Entertainment Trends (entertainmenttrends.net)

5 percent drop to mid 2021 followed by 15 percent increase following 2 years isn't doom by any means 🙄

Time to make some money flipping assets while kicking out recalcitrant customers , anyway who would listen to a treasury punter who misplaced $60b ..

Any fool that bought a house in the last three years over paid! They should already know that so it shouldn’t be a surprise when the house value drops below the amount they borrowed to purchase it!

All Australians want is a six-decade BREAK from Government interference, exponential tax increases disguised as spending, different rules for different people that fuel wealth inequality. Now that’s a PERFECT holiday.

Government has to show leniency to those on Job Seeker Nobody can live on $40 a day.

Why the sinister photo? The Banks have already showed enormous leniency allowing huge numbers of people to just stop paying.

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