Loan repayment relief impact credit file

Discussion in 'Loans & Mortgage Brokers' started by flosed, 23rd Mar, 2020.

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  1. flosed

    flosed Well-Known Member

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    We know banks provide repayment reliefe. (Not repayment holiday, but delayed interest capitalized)

    I wonder will applier's credit score impacted by this? Apra said those should not be treated as arrears. But need be reported specifically.

    So in theory, this will get some notes in your credit file. But not impact your score I guess?
     
    flosed, 23rd Mar, 2020
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I doubt it would.
     
    Terry_w, 23rd Mar, 2020
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    APRA announced that the credit score prior to 13 March will be frozen.
     
    Paul@PAS, 23rd Mar, 2020
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  4. Trainee

    Trainee Well-Known Member

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    You need and meet the criteria for mortgage relief, and you are worried about your credit score?
     
    Trainee, 23rd Mar, 2020
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  5. flosed

    flosed Well-Known Member

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    Any link to above announcement please? Thanks!
     
    flosed, 23rd Mar, 2020
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  6. KateSydney

    KateSydney Well-Known Member

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    KateSydney, 23rd Mar, 2020
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Poor wording I think:

    ".. the bank need not treat the period of the repayment holiday as a period of arrears. "

    What the heck does 'need not' mean. It is not the same as 'must not' but seems to imply that the bank still has the option of classing the repayment holiday as being in arrears.
     
    Terry_w, 24th Mar, 2020
    #7