Australian banks instruct bad real estate investors to sell

The Commonwealth Bank of Australia (CBA) encourages mortgage real estate investors to take advantage of rising home prices to sell their real estate.

Listing investment property on the market is one of several options banks are offering for customers who are unable to repay their mortgages. According to Australians..

“If you are an investor and you have investment real estate that is causing the challenge, it was an opportunity to take advantage of the market and sell it,” retail banking service CBA Group Executive Angus Sullivan told Australians. Told.

The CBA will carefully monitor signs of financial distress from mortgage customers with the termination of both JobKeeper and the mortgage deferral scheme this month.

Customers in the hardest-hit sectors, such as tourism and travel, will be the focus of the bank’s attention, Sullivan said.

“We have other, more custom-made solutions for our customers in more difficult situations, such as continuous extension periods and freezes on repayments over a period of time,” says Sullivan. “Then there is a slightly larger mass of people who voluntarily choose to leave the house, and obviously the number of postponements still being processed is very small.”

The bank said 85 percent of postponed mortgage customers are now returning to their original payment plans.

Only 1.6% of CBA’s customers are still deferring their mortgages, while other customers are reducing repayments, making other payment plans, or choosing to sell their real estate.

latest data As of February 28, the total unpaid repayment for mortgage deferrals was reduced to 5% compared to all deferred loans, according to the Australian Bankers Association (ABA).

“In the midst of COVID, when things went awry, only 10% of Australian mortgage holders postponed payments for those mortgages,” said ABACEO. Anna Bry told 2GB March 3rd. “90% of these people are now paying back in full.”

Bry told ABC Radio Both JobKeeper and the mortgage deferral scheme will end within a few days of each other, so “casualties” will be inevitable.

“I have someone who has to face the very difficult and painful decision to do the right thing by selling when they still have the fairness and money they can take out and keep their heads on the water. I think, “Bry said.

January data figures According to the Australian Prudential Regulation Authority (APRA), most loan postponements came from Victoria, which survived a long and severe blockade.

“Victoria is the state with the highest percentage of mortgages subject to deferral, and while the gap is narrowing, it is 2% compared to the rest of the country,” APRA reported.

Forced home sales have been frozen until September, so the CBA has yet to reclaim homes from their suffering homes.

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