The Australian Prudential Regulation Authority (APRA) data shows that up to 30 June, total loans deferred amount to $274 billion.

Home loans make up $195 billion of that figure, while small business loans account for $55 billion, or 17% of the total small business loan book in Australia.

A bulk of the home loans deferred come from investors, at 34% of deferrals.

Additionally, while 95% loan-to-value ratio loans make up just 5% of the overall loan book, they account for 8% of deferrals. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *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. Rates correct as of . View disclaimer.

"The housing risk profile shows that housing loans granted repayment deferrals are more likely to be extended to owner-occupier borrowers, subject to principal and interest repayments, and have higher loan to value ratios than all housing loans," APRA's report said.

In June, $40 billion worth of loans were approved for deferral, while $18 billion exited deferral. 

Small business loans experienced a decrease in the deferral rate - down to 17% from 18% from May to June.

Loan deferrals were initially announced by the Australian Banking Association in March, with deferrals set to last for six months, but in early July deferrals were extended for another four months.

The risks of deferring

Although borrowers may not have to pay anything during a deferral, interest is still capitalised, meaning they could be paying more over the life of the loan.

With total loan deferral periods lasting up to ten months, in late March Standard and Poor's said Australian 'prime' mortgage bonds have enough cash reserves to last nine months of falling investment levels.

Falling investment levels could result in mortgage bond rating downgrades, which could tighten credit at the retail level, similar to what was seen during the global financial crisis from 2007 to 2009.

Additionally, research from investment bank Morgan Stanley found 55% of mortgage holders in Australia were receiving some form of income support, with 15% of those surveyed receiving unemployment benefits such as JobSeeker.

Investment commentator Alan Kohler wrote in The Australian that borrowers are heading for a fiscal cliff.

"The average mortgage is $467,700, so those people collectively owe more than $1 trillion," he said.

"Even if this group’s average mortgage is half that, and even if only a third of them don’t get a job and can’t meet their repayments, the loans in default would be equal to the entire capital of the Australian banking system."





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