Business

Monday June 22, 2009

Bankers back mortgage breaks plan


SYDNEY: Australia’s banking industry has strongly supported a government plan to support borrowers struggling to pay off mortgages in the global financial downturn, Treasurer Wayne Swan said yesterday.

Swan said 144 retail banks, building societies and credit unions had signed up to a set of principles outlined by the government earlier this year and agreed by the country’s four major banks in April.

Under the principles, options include postponement of repayments for up to 12 months, with interest recapitalised on the loan, extensions of the life of a mortgage, interest-only breaks on loan repayments and fee waivers. – Reuters

In a statement, Swan said all members of the Association of Building Societies and Credit Unions had signed up, along with all “retail members” of the Australian Bankers’ Association with a “focus in the mortgage market”.

“These principles will ensure that families finding it tough to paying off their mortgage in the face of the global recession are fairly treated by their bank, building society or credit union,” Swan said in the statement. – Reuters


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