Major banks offer loan relief for NSW residents impacted by virus lockdown

Australia’s major banks have implemented support measures including loan deferrals for residents impacted by NSW’s coronavirus lockdown.

Australia’s major banks have ramped up support for customers negatively impacted from the ongoing coronavirus lockdown plaguing NSW.

Commonwealth Bank, Westpac, NAB and ANZ have all announced a raft of measures including loan deferrals and fee waivers for NSW residents and businesses stuck in isolation because of the Bondi Covid-19 cluster.

The measures are available for customers where income has fallen due to forced business closures in the Greater Sydney, Central Coast, Blue Mountains, Wollongong and Illawarra regions.

Banks will also be offering the opportunity for loan customers to switch to fixed rates, pause repayments and credit card and interest reductions.

Australia’s major banks have amped up support for customers impacted by Covid-19. Picture: Joel Carrett / AAP

CBA chief executive Matt Comyn said he is confident greater Sydney would be able to overcome the two-week lockdown, but urges impacted residents to contact their bank immediately if they need support.

“I urge anyone who is concerned about their financial circumstances to contact their bank or financial institution to see what help there is available to them,” Mr Comyn said.

Mr Comyn noted close to 20,000 of the Sydney-based bank’s employees have been forced to work from home, but reassured banking services would remain open during the period.

“Banking is a designated essential service and we very much remain open for business,” he said.

All four major banks will offer financial counselling support during the period.

CBA chief executive Matt Comyn said he is confident greater Sydney would be able to overcome the two-week lockdown. Picture: Joel Carrett / NCA NewsWire

NAB business bank executive Andrew Irvine said each banker would be dealing with each situation on a case-by-case basis.

“Our bankers will work with customers to understand their individual situation, the pressures they’re under and how we can then tailor support specifically for them,” he said.

Westpac head of consumer and business Chris de Bruin warned the pandemic is still challenging businesses and the bank would be offering tailored support.

During the height of the pandemic last year, Australia’s banking industry implemented sweeping support measures which including loan deferrals of up to six months for customers which flagged financial stress.

“The Covid-19 pandemic continues to present challenges for households and small business owners, and we know that some customers across NSW will need an extra helping hand to get through the latest restrictions,” Mr de Bruin said.

Westpac will be offering tailored support. Picture: Kelly Barnes / AAP

“We have specialist support teams ready to assist customers and we’re here to help them get back on their feet.”

Westpac’s measures also include its subsidiaries; Bank of Melbourne, St George and BankSA.

ANZ flagged business customers still have access to the coronavirus SME Loan Recovery scheme, which offers firms loans at reduced rates of up to $5 million.

“We know this lockdown will have a big impact on our customers in and around Sydney,” ANZ executive Mark Hand said.

“Like the lockdowns we’ve seen in other states, we know it can be some time before the real effects are felt by families and businesses.

“We want our customers to know there is help available if they need it in this difficult time.

Australia’s major banks are offering the following support:

Commonwealth Bank retail customers

• Accessing funds from redraw facilities and everyday offset accounts.
• Restructuring home loan debt.
• Switching home loans to a fixed rate.
• Reducing repayments to the minimum monthly amounts.
• Freezes on forced sales until September 2021 for customers impacted by Covid-19.

Commonwealth Bank business customers

• Repayment deferrals on asset finance and certain business loans.
• Refunds on merchant terminal fees for up to 90 days.
• Fee waivers on cash deposits and farm management deposit accounts.
• Tailored support for larger business customers
• Loans through the federal government’s SME Loan Recovery Scheme, which have repayment holidays attached from 12 months. Loans are for up to $5m with rates between 2.6 per cent and 3.75 per cent.

Westpac support measures for consumers

• Interest rate and credit card reductions.
• Home and personal loan repayment deferrals or reductions. This includes interest rate reductions or loan extensions.
• Fee waivers.
• Debt restructuring.
• financial counselling and hardship support.

Westpac support measures for business customers

• Tailored management support for small business customers facing financial hardship.
• Repayment reductions or deferrals on asset and equipment finance.
• Business loan restructuring with no fees incurred.
• Referrals to financial counselling support.
• Access to the SME Recovery Loan Scheme.

NAB support measures for consumers

• Temporary reductions in repayments which are arranged with the bank.
• Temporary payment breaks.
• Home loan restructuring or debt consolidation.
• Financial counselling.

NAB support or businesses

• Restructuring business facilities, which includes reduced or waived application fees.
• Principal payment deferrals.
• Waiving costs and charges for term deposit withdrawals.
• Credit card and personal loan support.
• Professional wellbeing support.

ANZ relief for customers

• Short term repayment relief.
• Waiving fees.
• Home loan debt restructuring including switching to a fixed-term rate.

ANZ business relief

• Short term repayment relief on asset finance or business loans.
• Refunds on merchant terminal fees and some other fee waivers.
• Financial counselling support.

Originally published as Major banks offer loan relief for NSW residents impacted by virus lockdown