Victoria lockdown: How is CommBank helping customers?

Commonwealth Bank has extended support to customers impacted by Victoria’s prolonged lockdown, offering a support package which includes short-term deferrals on mortgage and business loan repayments.

CEO Matt Comyn said the bank is aware of the challenges many Victorians are currently facing, and encouraged struggling customers to get in contact with CommBank.

“We have been able to provide a lot of support for our Victorian customers over the past year and a half through COVID and we are here to help anyone who needs support during this latest difficult time,” he said.

Retail customers

CBA’s hardship support package will include one month pauses on loan repayments. While these previously required a full assessment, applications are currently being fast-tracked to deliver quick relief. Other measures include:

• Access to funds via a redraw facility

• Restructuring home loan debt

• Switching to a fixed rate home loan

• Reducing repayments to the minimum monthly amount

• Using any available funds in their offset account.

CBA has also put a freeze on forced sales until September 2021, which it hopes will ease the stress customers struggling to meet their loan obligations might be experiencing.

Businesses

Small and medium businesses impacted the recent lockdown will also receive assistance, with eligible customers able to take advantage of the following measures:

• Repayment deferrals on asset finance and eligible business loans

• Refunds on merchant terminal fees for up to 90 days

• Waived fees and notice periods on Cash Deposit and Farm Management Deposit accounts

• Tailored support for larger business customers

The major bank is also offering business loans up to $5 million via the government-backed SME Loan Recovery Scheme, with variable rates starting at 2.6% p.a. for secured loans and 2.85% p.a. for secured loans with a repayment holiday from 12 months.

“We have a range of measures to help businesses to free up cash flow and provide some certainty, whether it's through loan deferrals, fee refunds or new low cost funding through the SME Recovery Loan Scheme,” said Comyn.

“As well as helping to deliver vital cash flow and provide peace of mind during this challenging time, these funds have allowed many businesses to adapt and innovate their operations, such as transitioning online.”