Mortgage holidays set for extension
The finance minister believes extending mortgage holidays to help hard-up home loan customers would be "justified", as speculation grows the Reserve Bank will extend the original scheme, due to expire in September.
During the Covid-19 lockdown in March, the Reserve Bank, government and retail banks agreed a support package to grant payment deferrals or shifts to interest-only for six months, to help hard-up households.
As the six-month period nears its end, politicians are keen to avoid a spate of home loan defaults and are reviewing further breaks for those who have lost their jobs.
Robertson told Stuff: “The advice that I've had from the Reserve Bank is that they are considering looking at the extension of the mortgage deferral schemes – of the support that they give to enable the banks to provide those schemes – and I think judging from the conversations I've had with trading banks, that would be justified."
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