CBA gives jobless borrowers a break

Commonwealth Bank will defer interest repayments for up to 12 months for borrowers who lose their jobs. The initiative, announced yesterday by chief executive Ralph Norris, is designed to prevent families hit by the global recession from going into arrears on their mortgage and being forced to sell up.

"In the case of those unfortunate to be unemployed, we will provide repayment holidays for six months, and in some circumstances up to 12 months, with interest being capitalised," he said. Mortgage holders will ultimately have to pay the deferred payments, plus interest.

Commonwealth Bank says the unemployment rate will rise this year from 5.2 per cent to seven per cent.

Source: The Australian