Banks set to offer coronavirus relief packages

Photo by Rémi Walle on Unsplash

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.

ABA has of 22 members across Australia, including AMP, ANZ, Bank Australia, BOQ, Bendigo and Adelaide Bank, Commonwealth Bank, Citigroup, ING, Macquarie, NAB, Suncorp, Westpac and more. 

Looking for a low-rate home loan? Below are some of the lowest interest rates for owner-occupied, variable home loans in the market.

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Disclaimers

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 2020. They are (in descending order): Great Southern Bank, 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 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
• If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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, Performance Drive 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.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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