FED: Small lenders encouraged to defer mortgages for jobless too
05 Apr 2009 11:07 AM
Subject: FED: Small lenders encouraged to defer mortgages for jobless too FED: Small lenders encouraged to defer mortgages for jobless too
CANBERRA, April 5 AAP - Small lenders are not part of a Rudd government brokered deal to give unemployed homeowners a 12-month holiday from mortgage repayments.
But the government is encouraging smaller lenders to follow the big four banks' lead.
Finance Minister Lindsay Tanner says the largest four banks have agreed to offer a 12-month breather to unemployed homeowners from mortgage repayments.
"The government has provided a lot of support to our banks through the guarantees that have been delivered and we believe that the community is entitled to something in return," he told the Nine Network on Sunday.
"It is important that it doesn't undermine their finances - and it won't - but it will also help a lot of people who do struggle because of the tough times we are entering into."
The big four banks - the Commonwealth Bank, ANZ, Westpac and National Australia Bank - have also agreed to consider offering 12-month reprieves on repayments for other types of loans, such as car loans.
Mr Tanner said smaller lenders, including Aussie, were not part of the deal but he hoped they followed suit.
"There are obviously a proportion of people who won't have the same possibilities offered to them by other lenders but I suspect you will find that there may be individual arrangements that may apply in some of those circumstances," he said.
"The bulk of mortgages across Australia are held by the four major banks. I would hope that some other lenders will follow suit but of course it will depend on the individual circumstances of those lenders."
Prime Minister Kevin Rudd is unveiling the deal with the banks at a jobs forum in Melbourne on Sunday.
AAP mj/ldj/apm =0A
FED: Small lenders encouraged to defer mortgages for jobless too