As I mentioned here, the Federal government has launched stimulus packages to support households and businesses and address the significant economic consequences of COVID-19.
Australia's big businesses are doing their part as well. Last week Telstra Corporation Ltd (ASX: TLS) announced a number of important measures as part of its contribution to the national economic stimulus response to the COVID-19 outbreak.
But, outside the government, perhaps the biggest support is coming from the big four banks. This is particularly the case with its home loans, with all four banks offering some form of mortgage relief.
In light of this, if you have a home loan and are struggling to make ends meet because of the coronavirus crisis, then I would suggest you speak to your bank right away.
In the meantime, here is a summary of the mortgage relief that the banks are offering their customers:
Australia and New Zealand Banking Group (ASX: ANZ)
If you are eligible, ANZ will put the repayments on your home loan on hold for a period of up to six months, with a review at three months. During the assistance period, interest will continue to accrue and will be added to the outstanding balance of the loan.
Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank will also allow those that have been impacted to defer their home loan repayments for up to six months. Interest will be capitalised and the charges will be added to the loan balance. However, the loan balance will be recalculated at the end of the support period and the repayment period will be extended so that the repayments stay the same as they were before the deferral.
National Australia Bank Ltd (ASX: NAB)
National Australia Bank is also allowing those that have been impacted to defer repayments for up to six months. This applies for owner-occupiers, investors, and those on a principal and interest or interest only repayment schedule. The bank intends to review things after three months.
Westpac Banking Corp (ASX: WBC)
Finally, Australia's oldest bank is doing things a little differently. It will allow impacted customers to defer repayments for three months initially. After which, a three-month extension will be made available, subject to review.
