Banks will allow flood-affected customers to pause mortgage, credit card and some business loan repayments to assist with the recovery to the flood emergency in NSW and Queensland.
The Australian Banking Association says home loans customers can apply to defer repayments for up to three months.
Banks will also defer upcoming credit card payments and waive establishment and other fees for new loans or to restructure existing facilities, and will allow early access to term deposits.
“Once the worst of the emergencies are over and the clean-ups begin, we want Australians who have been impacted to know their bank is ready with tailored support to assist as they recover,” Australian Banking Association CEO Anna Bligh says.
Bligh was premier of Queensland during the devastating 2011 floods.
Banks also stepped up when COVID-19 struck, deferring repayments for billions of dollars in mortgages and business loans as the economy shut down, which helped re-establish their reputations after the woes of the Hayne royal commission.
Westpac has announced additional measures on Thursday, including providing $3000 in cash grants to certain customers and offering halts on all interest accrual on unsecured credit products for up to three months.
Westpac chief executive for consumer and business banking, Chris de Bruin, says customer support teams are fielding an increase in calls from tradies, cafés, other shop owners and tourism operators seeking help.
“Some of these businesses have only just started to recover from the pandemic now they’ve been forced to close their doors once again,” he says.
“At this stage, safety is the first priority.
“But in the coming days, as people begin to return to their businesses, they may need cash on hand so they can get the power back on, start the clean-up, and eventually restock the shelves and begin to rebuild their businesses.”
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