Member banks of the Australian Banking Association today announced they will offer assistance to those suffering from coronavirus.
This morning, CEOs of the member banks met with Treasurer Josh Frydenberg to discuss the strength of the economy, and banks' responses to the coronavirus (COVID-19).
Australian Banking Association (ABA) chief Anna Bligh said banks are ready to provide financial support to customers who are suffering from the virus.
“Banks stand ready to support customers and if anyone is in need of assistance, they shouldn’t wait but come forward as soon as possible," she said.
“In particular any business financially impacted by the effects of COVID-19 should contact their bank to be assessed on a case by case basis to access the assistance on offer."
Such relief depends on individual circumstances, but could include:
- A deferral of loan payments
- Waiving fees and charges
- Interest-free periods or no interest rate increases
- Debt consolidation to help make repayments more manageable
Customers who may be suffering from coronavirus are urged to get in contact with their bank's hardship team to discuss options.
ABA chair and Commonwealth Bank CEO Matt Comyn said he has faith in the banks' abilities to cope with the potential economic fallout of coronavirus.
“Australia has a very strong financial system with banks that are well-capitalised and have strong balance sheets," he said.
“Banks have supported the country through difficult times in the past and continue to do so. We are very much open for business."
Previously, banks have offered similar assistance to those who were impacted by bushfires in late 2019 and early 2020.
Looking for a low-rate home loan? Below are some of the lowest interest rates for owner-occupied, variable home loans in the market.
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 03 August 2020. View disclaimer.
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2019. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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