Sunday, Australian Treasurer, Wayne Swan announced a new agreement between the Government and the four major banks representing around 80% of the mortgage market to assist borrowers facing financial difficulty.

According to the deal, the banks will offer a range of options for assistance to people with mortgages who lose their jobs and fall into financial hardship. Borrowers who apply for temporary assistance may need to provide evidence of financial hardship.

Options for assistance that the banks can offer include postponement for up to 12 months the dates on which mortgage payments are due under the contract, fee waivers, interest-only breaks on loan repayments and an extension of the period of the contract and a reduction in the amount of each payment due under the contract.

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