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Major bank extends foreclosure moratorium

A big four bank has said that it will extend its freeze on foreclosures if customers are unable to meet their home loan repayments.

In November 2020, the Commonwealth Bank of Australia (CBA) said that it would extend its pause on foreclosures until at least September 2021, due to the ongoing impacts of the coronavirus pandemic.

The bank has today (19 July) announced that this will be extended further.

The extended moratorium will allow owner-occupier customers who have made their home loan repayments on time for at least 12 months prior to their deferral, but are again unable to make their full repayments, to remain in their home until at least February 2022.

The bank’s chief executive officer, Matt Comyn, stated: “We believe extending our freeze on any foreclosures will give those customers who are again impacted by COVID-19 more time to get back on their feet, and reassurance that they can remain in their home this Christmas and into next year,” Mr Comyn said.

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The extension of the freeze comes as many banks, including CBA, offer disaster support and loan deferral pauses due to the resurgence of COVID in Australia, which has triggered lockdowns in multiple states.

The bank highlighted that its two-month loan deferral option could be particularly helpful for those in the Fairfield, Liverpool and Canterbury Bankstown LGAs in Sydney – currently under a strict lockdown – and for customers in the construction and discretionary retail sectors, which have been required to close operations from today (19 July).  

“This is a critical time for all of us to pull together and support the communities most heavily impacted by the latest COVID-19 outbreak and the resulting lockdowns," Mr Comyn said. 

“CBA is offering home loan repayment deferrals to impacted customers, especially those in need in the areas most affected by the lockdowns. These will come into effect from today (Monday, 19 July 2021) and I urge any customer who needs our help to contact us directly,” Mr Comyn said.

[Related: Banks offer nationwide COVID-19 relief]

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Major bank extends foreclosure moratorium
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