At this moment when most people are worried about earning enough money to maintain their daily lives. So, you can think about the stress of the mortgage holders. Due to scarcity the cash, all such people were unable to complete their repayment for at least 6 months. But good news came from the banks. As the banks have cut the interest rates for the mortgage holders, all such holders can save hundreds of dollars a month. Some people who are worried as some of these schemes are about to end by September but there is no need to worry at all because numerous schemesare on way to help all those people.
Three of the biggest banks of Australia (Westpac, ANZ, and Commonwealth) are allowing most of the homeowners to an interest-only loan for the year 2020. For those who already had an interest-only loan, these banks will extend the time period for such loans.
Banks will now make it easier for all those who want to switch to the interest-only payment methods. The executives from those banks are saying that they working to make this process assessable to all such people.
Here is an example to show you the effects of this scheme, if you have a home loan worth $400,000 for 30 years, with the help of this interest-only payment method, you can very easily save up to $476 every month for a year.
In this mode of loan repayment, the owner will be required to pay only the interest, not the principal amount. And you will not get into any trouble due to paying less amount of money.
For all those who are self-employed and had a home loan, retaining their homes was not an easy task amidst this pandemic. But this step from the banks has made it possible for them.
Some of the finance experts have a different viewpoint regarding this situation. They are saying that the homeowners might have to pay an extra amount in the whole lifetime of the loan because the interest-only loan repayment method will not last long.