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Not every retrenched worker with a mortgage covered

Discussion in 'The Economy' started by Billv, 5th Apr, 2009.

  1. Billv

    Billv Getting there

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    he Federal Government has admitted not every retrenched worker with a mortgage will benefit from a loan repayment reprieve it has negotiated with Australia's four major banks.

    The banks have agreed to offer a 12-month period of relief from mortgage payments to workers who have lost their jobs.

    They will also consider extending mortgage contract periods and reducing repayments, and providing interest-only repayment options on other loans.

    But smaller banks, credit unions, building societies and non-bank lenders - who make up 20 per cent of the mortgage market - are not part of the deal.

    Treasurer Wayne Swan, who negotiated the reprieve "principles", says the arrangements won't work for everyone, but will be available for those in greatest need.

    "It means that workers who have gone through the trauma of losing their jobs will have up to 12 months grace from the stress of having to find the money to service their home loans," he said

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    Not every retrenched worker with a mortgage covered | smh.com.au
     
  2. Chris C

    Chris C Well-Known Member

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    The sad reality is I imagine a lot of individuals that have gone with non-bank lenders are more likely to be individuals who will lose their jobs.