The head of the Australian Banking Association believes the industry is providing a much-needed lifeline for households during the coronavirus pandemic by deferring repayments on their home loans.
New ABA figures released on Saturday show one-in-14 mortgages have been deferred for six months during the crisis, or 429,000 home loans worth $153.5 billion.
That brings the total number of deferred mortgages on the books of banks to 703,000, totalling $211 billion.
ABA CEO Anna Bligh said banks have been prepared to support customers throughout the crisis and assist the economy from the devastating effects of the pandemic.
"Right now they are getting a lifeline, without it I can't imagine what would be happening to people," Ms Bligh told reporters in Sydney.
"Australian families who are financially affected by this crisis have had the breathing space they need with a six-month deferral on their home loan repayment while they chart a path through to the other side of this downturn."
She said some people have managed to get back into work and have cancelled deferment, but there are others - examined on a case-by-case basis - seeking an extension of the six-month period.
Banks have also hired 1500 new staff while redeploying over 2200 employees to frontline areas such as call centres to help meet the historic surge in demand for support over the past few months.
Australian Associated Press
