Finance Minister Grant Robertson announced the scheme on March 24 after an agreement was reached between banks and the banking regulator.
The Government-approved scheme enables banks to allow customers to reduce or suspend mortgage repayments for up to six months, without the Reserve Bank considering those loans to be non-performing when assessing bank solvency.
The interest on the loans continues to accrue.
Banks have always had loan deferral and interest-only options but applicants typically needed to go through a rigorous hardship application process.
The scheme arrangement essentially made it so anyone affected by Covid-19 could apply and be accepted, allowing the banks to handle high volumes of applications.
Property expert Sara Hartigan joined The One Roof Radio Show on The Weekend Collective to share her advice for people who have or are thinking of getting a mortgage.
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