ANZ: No more repayment holidays

ANZ is axing loan repayment holidays, prompting questions about whether mortgage advisers can continue to recommend the bank as an option for their clients.

Wednesday, October 25th 2017, 8:49PM

by Susan Edmunds

ANZ spokeswoman Emma Mellow said banking regulations meant that customers who used loan repayment holidays now have to be recorded as if they had missed their loan repayments.

“This would negatively affect their credit rating. The customers who chose this option were not in financial hardship, but proactively managing their particular situation – for example, an extended overseas holiday. We didn’t think these customers should have their credit rating impacted, when there are other alternatives are suitable (which will depend on their situation).”

Mellow said only a small number of customers used loan repayment holidays. Existing arrangements would continue, she said.

Brokers are not allowed to publicly criticise lenders under the terms of their agreements.

But one who did not want to be identified said he was concerned at the change.  “I think it’s an absolute disgrace and another compelling reason why I would not send future business to ANZ… If that’s how they treat customers when they hit trouble.”

He said brokers would be obligated to explain to their clients that a standard repayment holiday would not be an option with ANZ.

ANZ had already been operating a system under which anyone who wanted a repayment holiday had to be dealt with by a designated “hardship unit” within the bank. Brokers were not able to make the arrangement on behalf of their clients.

Mellow said the hardship relief process had not changed. "We encourage customers to talk to us if they're having any problems meeting their obligations on their loan."

Tags: ANZ mortgages

« Mortgage advisers: start thinking about your education nowMortgage advisers key players in credit union’s success »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

© Copyright 1997-2021 Tarawera Publishing Ltd. All Rights Reserved