powering smart financial decisions

What the big four banks’ COVID-19 packages mean for households

What the big four banks’ COVID-19 packages mean for households

There’s been a lot of news lately about how different services are responding to the COVID-19 crisis. It’s not unlikely that you may have missed information that affects you amongst all of the headlines.

Here’s what the big four banks’ different COVID-19 packages mean for households:

Variable rate cut for new and existing customers0%0%0%0.15%
Defer loan payments for mortgage holders in financial difficulty for up to 6 monthsyesyesyesyes
Reduce fixed ratesyesyesyesyes
Increase term deposits on at least one accountyesyesyesno
Highest term deposit rate for everyday customers1.70% for 12 months1.70% for 12 months1.75% for 10 months1.05% for 12 months
Lowest fixed rate offered by bank2.29%2.19%2.19%2.19%

Some other measures:

  • Westpac: Offering over-65s an 8-month term deposit of 2.00%.
  • CBA: Customers paying extra on their home loan will have their repayments reduced to the minimum to free up cash.
  • CBA: Offering easier eligibility criteria for personal overdrafts.
  • NAB: Lowest fixed rate is for first home buyers only. Westpac’s lowest is for people with a deposit of 30% or more.

Not with one of the big four banks, or with another bank not mentioned? The RBA Rate Tracker offers live updates on which banks have announced rate cuts.

Facing financial difficulty? Here’s what you can do:

  • Call your bank. You won’t be alone in needing extra support at the moment. Let them know your situation and be aware they may ask for proof of financial hardship.
  • Worried about your home loan? The big four banks are supporting customers in hardship by waiving fees, allowing deferred loan payments (up to six months) and even extending loan terms to lower repayments.
  • The National Debt Hotline can also help: 1800 007 007.

Did you find this helpful? Why not share this news?

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.



More home loans news

More news? Read more here

Learn more about home loans