What YOU should do if lockdowns have taken your job away and you’re struggling to pay your mortgage
What you should do if the closures have taken your job away and you’re struggling to pay your mortgage – as the cost of closing Sydney hits $ 1.5 billion a week
- Australian banks are offering mortgage holidays as they did in early 2020
- Sydney lockdown rules now ban construction work and non-essential trade
- But there are costs associated with postponing loan repayments for two months.
- KPMG estimates tougher Sydney lockdown will now cost $ 1.5 billion per week
Australians who have lost their jobs because of the lockdowns can ask their bank for mortgage leave.
Construction workers in Sydney have been banned from going to a construction site since Monday, while non-essential stores have gone out of business since Saturday.
Melbourne is extending its lockdown on Tuesday beyond the first five days, as non-critical retailers are also banned from opening.
Professional services firm KPMG now calculates the tighter Sydney lockdown will cost $ 1.5 billion per week – more than double the Treasury’s estimate of $ 700 million for the older, more moderate lockdown that allowed to all stores to trade.
Small business owners and workers with mortgages can ask their bank for loan repayment leave as they were able to do in March 2020 during national Covid lockdowns.
Australians who have lost their jobs because of the lockdowns can ask their bank for mortgage leave. Pictured is a stock image
Big bank foreclosure relief
COMMONWEALTH: Moratorium on evictions until February 2022, two-month postponements
WESTPAC: Three-month loan deferrals
ANZ: two-month postponements
But RateCity’s research director, Sally Tindall, said borrowers should realize that deferring two-month payments on a $ 500,000 mortgage would add an additional $ 1,712 in administration fees over the 25 years. remaining on the loan.
“As useful as it can be in helping you get through a difficult time, a mortgage deferral is by no means free,” she said.
The Commonwealth Bank, Australia’s largest mortgage lender, said on Monday it would apply a moratorium on evictions until February 2022.
Borrowers in Southwest Sydney are offered automatic two-month mortgage deferrals, with three-month vacation for small business loans.
Residents of the municipal areas of Fairfield, Liverpool and Canterbury-Bankstown have been banned from leaving their area unless they are working in health or emergency services.
Fairfield is particularly affected by taxi and rideshare drivers and construction workers among the most common occupations, according to census data.
Construction workers in Sydney have, since Monday, been banned from going to a construction site (pictured is a house under construction in Marsden Park
Westpac, Australia’s oldest bank, offers three-month mortgage deferrals for home loans and small businesses.
ANZ offers two-month postponements.
In March of last year, as national Covid restrictions were imposed, the Big Four banks offered six-month mortgage deferrals.
KPMG chief economist Dr Brendan Rynne calculates Sydney’s new, tighter lockdowns would cost $ 220 million a day in economic activity, with NSW Premier Gladys Berejiklian announcing on Saturday that the restrictions would last until July 30 at least.
The weekly cost of $ 1.5 billion is more than double the figure of $ 700 million, calculated by the Federal Treasury before New South Wales lockdown restrictions were extended for Sydney, the central coast, Wollongong and the Blue Mountains.
AMP Capital’s chief economist Shane Oliver had put the economic cost at $ 1 billion per week based on the original June 26 foreclosure rules.
To put this in perspective, the CBA receives $ 1 billion a year from taxpayers.
KPMG also predicted closures in Sydney and Melbourne through August and would cause the Australian economy to contract in the September quarter, marking the first negative quarter since the Covid recession of 2020.
Non-essential stores (pictured, a closed store in Fairfield, southwest Sydney) have gone out of business since Saturday, unless it’s a supermarket, fruit vendor and vegetables, from a gas station or from a pharmacist