Westpac extends COVID-19 support for home loan and small business customers
8 July 2020
Westpac has announced additional assistance for home loan and small business customers on loan deferral packages who continue to be significantly impacted by the COVID-19 pandemic.
The measures include further support for customers who are not in a financial position to resume their full loan repayments from the end of September.
“The COVID-19 pandemic is continuing to have a fast-changing impact here in Australia and we know that for some customers, this will have a longer term effect on their circumstances and further financial support will be required,” Westpac Acting Chief Financial Officer, Gary Thursby, said.
“In discussion with the industry and regulators, we will be making changes to allow more time and breathing space for customers who aren’t in a position to return to full payments again from October. This includes access to tailored support through our customer assistance program, where our specialist team will work with customers to review their financial circumstances.
“For customers who remain under stress but can still contribute towards their loan repayments, we will provide support where we can help work through options that may be available to adjust their loan.
“However, we anticipate that a significant number of customers will be able to resume regular repayments when their deferral term ends. We expect these customers to start their repayments again and we would encourage as many people as possible to do so,” Mr Thursby said.
Consumer home loan support
Since the start of the COVID-19 pandemic, Westpac has helped more than 130,000 mortgage customers defer their repayments for up to three months, with a further three months available on review.
The following additional support will be available for our home loan customers who have received this support and are not able to start making full mortgage repayments at the end of their deferral period:
- For customers who can resume some repayments, Westpac will work with them on options that may be available to help adjust their home loan. This could include switching from principal and interest repayments to interest only, extending interest only terms, or moving to a fixed home loan rate.
- Customers who require further support after this period and cannot resume repayments can apply to extend their repayment deferral for up to four months.
Small business loan support
Westpac has helped more than 23,000 small business customers since the start of COVID-19.
For small business owners that require further support, Westpac will be providing the following financial assistance:
- Eligible small business customers can apply to extend their business loan repayment deferral period by up to four months. Interest will capitalise during the deferred repayment period.
- Westpac is establishing a new dedicated team of specialist bankers, designed to support customers through the ongoing challenging economic landscape with tailored assistance.