Rising interest rates have pushed some home loan repayments through the roof, but new parents may be able to get some reprieve.
NAB has announced that new parents finding home loan repayments challenging may now be eligible for additional support.
The initiative would enable eligible customers on parental leave the option to reduce their home loan repayments by up to 75 per cent for six months.
NAB Assist executive Stephanie Boag said the move would be a game changer for many new families and could be critical for those struggling to keep up with the rising cost of living.
“Having a child or adding to the family can be a shock, not only in terms of the sleep deprivation, but also when it comes to making ends meet,” Boag said.
“When a parent on parental leave gets in touch with us to flag concerns about meeting their financial commitments, we’ve decided as a team to offer reduced payments on their home loan with no need to check back in with us for six months.
“We’re hoping this will give them more time to enjoy their new family and a clear path to get back on track sooner.”
However, a NAB spokesperson told Yahoo Finance that once the parental leave support period came to an end, home loan payments would be readjusted to make up for the reduced-payment period.
This means that, over time, parents will need to make larger repayments to make up the difference.
How can parents apply for the scheme?
Customers looking to access NAB Assist’s parental support initiative can go . The support is available to eligible home loan customers on principal-and-interest or interest-only home loans.
Customers need to be on parental leave, or going on parental leave in the next month, and will be assessed on whether they can make a minimum repayment of at least 25 per cent.
Boag urged any customers who were concerned about their financial position to get in touch with their bank.
“If you are worried about being able to make your repayments, please contact your bank. There are lots of options available and we are here to help,” Boag said.
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