Month: May 2020

New Zealand Bankers’ Association chief executive Roger Beaumont said the rates were higher because the loans were unsecured – there is no house or car for the bank to sell to recover debt if you stop paying.

This is supported by NZ Bankers’ Association figures showing more than 61,400 customers have opted to reduce repayments on loans worth about $20 billion – and another 54,200 borrowers have deferred payments altogether on loans of $19.1 billion.

“Banks are working hard to help customers in need. That’s reflected in the fact over 115,000 customers have reduced or deferred all home loan repayments since we went into level 4 lockdown, for loans totalling nearly $40 billion. Now that we’re at level 2 some of these customers are starting to see a way through… Read more »

Beaumont encouraged borrowers who had deferred their loans to keep in touch with their bank if their circumstances changed. “It’s in borrowers’ interests to start repaying their loans as soon as they can. That may be before the deferral period ends.”

At the end of Monday, 59,237 bank borrowers were making reduced repayments on their home loans, or other loans, and 53,779 were on complete repayment holidays, figures from the New Zealand Bankers’ Association showed.

“Last year, our banks spent $5.7 billion running their businesses in New Zealand. That includes paying local businesses for goods and services. We expect this initiative will make a difference for many businesses.”

According to NZ Bankers Association figures nearly 54,000 bank customers with mortgages of just under $19 billion have gone on the six month repayment ‘holiday’, which was offered in March.

According to the New Zealand Bankers’ Association, banks approved repayment deferrals on $18.9 billion of consumer loans to 53,779 customers, in the nearly two months to May 18.

The banking sector, meanwhile, is on board and committing to paying suppliers of goods and services within two weeks, New Zealand Bankers’ Association chief executive Roger Beaumont said.

“We’re pleased to make this commitment to support New Zealand businesses. It’s another way in which we’re supporting our economic recovery.”