Australia's largest banks have accepted a government proposal for a 12 month reprieve on mortgage payments when someone loses their job.
from the Sydney Morning Herald
HOMEBUYERS who lose their jobs will be eligible for a 12-month reprieve on mortgage repayments and could be granted concessions on car loans and other debt, as part of a new deal between the Federal Government and the major banks.
As unemployment rates soar, Treasurer Wayne Swan has pressured the big four banks into helping families who fall victim to the global recession.
In a speech to an Australian employment forum today, Prime Minister Kevin Rudd will announce the banks have agreed to post pone loan repayments for up to 12 months for the jobless.
I expect this policy could also help encourage home buyers, for the same reasons that some auto manufactures have been offering financing help if a car buyer later becomes unemployed.