CBA kicks mortgage cliff to Q3 2021

With repayments on $133 billion worth of mortgages from 325,000 borrowers still deferred, according to APRA, Australia’s largest bank – CBA – has extended a moratorium on forced sales until September 2021:

In an email between CBA and Financial Counselling Australia (FCA) obtained by News Corp, the bank confirmed customers still impacted by the health crisis would have certainty of remaining in their house for the upcoming holiday season.

CBA head of retail banking, Angus Sullivan, said the bank is aware a number of customers remain worried about the ongoing uncertainty plaguing the economy from the pandemic, with the eviction freeze designed to give borrowers ample time to assess their financial situation.

“This means any customer making full mortgage repayments in the 12 months prior to entering a home loan deferral will be able to remain in their home until September 2021, even if they are now struggling to get back to making repayments, where they agree to work with us,” Mr Sullivan said in his email to the FCA chief executive Fiona Guthrie.

“This will give these customers the opportunity to get back on their feet, confident they can remain in their home this Christmas and well into next year.”

Expect the other banks to fall into line with CBA.

Thus, another key risk for Australia’s property market – forced sales – has been mitigated for the time being.

It’s pretty clear at this point that Australia’s authorities will do anything to support the housing market.

Go long into the smaller capitals that are less impacted by the immigration collapse (e.g. Brisbane, Perth and Adelaide).

Unconventional Economist

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