Banks have allowed many homeowners to go on mortgage repayment holidays, either stopping repayments entirely, or making reduced repayments. READ MORE:* Why mortgage holidays are a windfall for banks, who could net up to $100m* Households already coming off home loan 'holidays', banks say* Banks promise Covid-19 mortgage holidays won't reduce credit scoresIt's also a political timebomb that will have a bearing on the upcoming election. Kevin Stent/Stuff The scale of the mortgage and household debt challenge for banks was revealed by the Reserve Bank in mid-May. One of the biggest of those questions is this: What are banks going to do when all these six-month mortgage holidays come to an end? The reasons households needed those mortgage holidays are not all going to magically vanish in the next few weeks.

Source: Stuff July 03, 2020 17:00 UTC