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NAB boss reveals warning signs that Australian banks are facing massive waves of loan defaults

NAB Boss Reveals Warnings Aussie Banks Are Facing HUGE Number Of Defaults – And Why Those Under Pressure Should Sell NOW

  • National Australia Bank CEO Ross McEwan fears home loan defaults
  • Banks are checking borrowers this month to see if they can resume repayments
  • NAB predicted a 14 percent drop in Melbourne median unit prices in May

The National Australia Bank CEO has unveiled the warning signs of a spate of mortgage defaults as the coronavirus recession worsens – and says those under debt pressure should be ready to sell soon.

As of this month, Australia’s largest banks are checking 450,000 borrowers to determine if they can repay their loans after a six-month mortgage vacation.

Those who are unable to resume their refunds can request another postponement until March 2021.

National Australia Bank CEO has revealed warning signs of spate of mortgage defaults as coronavirus recession worsens

National Australia Bank CEO has revealed warning signs of spate of mortgage defaults as coronavirus recession worsens

The CEO of National Australia Bank has revealed the warning signs of a wave of mortgage defaults as the coronavirus recession worsens.

National Australia Bank CEO has revealed warning signs of spate of mortgage defaults as coronavirus recession worsens

National Australia Bank CEO has revealed warning signs of spate of mortgage defaults as coronavirus recession worsens

National Australia Bank CEO has revealed warning signs of spate of mortgage defaults as coronavirus recession worsens

“What worries me now is that when we call customers to check in, 20 percent don’t answer the phone or call back – even when we’re texting, emailing and calling,” he told a parliamentary assembly. Economics Committee hearing on 11 September.

A month earlier, on August 14, McEwan suggested that those who couldn’t repay their loans should sell before house prices collapsed.

“Every reasonable step will be taken to keep people at home,” he said.

“But we all know there will be circumstances where people would do better to sell early and get some equity out of their home or keep some equity before it disappears.”

Mr. McEwan pleaded with struggling borrowers to answer their phones when the bank called.

‘We have to get over that. We can help, but we need someone to talk to, ”he told MPs a fortnight ago.

As of this month, Australia's largest banks are checking 450,000 borrowers to determine if they can repay their loans after a six-month mortgage vacation. Pictured is a Sydney home up for auction

As of this month, Australia's largest banks are checking 450,000 borrowers to determine if they can repay their loans after a six-month mortgage vacation. Pictured is a Sydney home up for auction

As of this month, Australia’s largest banks are checking 450,000 borrowers to determine if they can repay their loans after six months of mortgage vacation. Pictured is a Sydney home up for auction

In May, NAB predicted a 12.8 percent drop in Sydney’s median apartment price as Melbourne’s equivalent values ​​fell 14 percent.

The Reserve Bank of Australia is even more gloomy than the big banks, and last month released a paper forecast that a 40 percent drop in house prices was “an extreme but plausible scenario.”

The Australian Banking Association CEO, Anna Bligh, announced a fortnight ago that the banks would be checking 450,000 private and corporate borrowers in September and October to see if they could repay their loans again, following the mortgage holiday that takes effect in March. became.

The federal government’s National Housing Finance and Investment Corporation predicts a population shrinkage of 0.8 percent over two years.

In the absence of immigration, the Australian population is projected to decline by 214,000 from a peak in 2019 to a low in 2021 as a recession devastated the housing market.

In May, NAB predicted a 12.8 percent drop in Sydney median apartment price as Melbourne equivalent values ​​fell 14 percent

In May, NAB predicted a 12.8 percent drop in Sydney median apartment price as Melbourne equivalent values ​​fell 14 percent

In May, NAB predicted a 12.8 percent drop in Sydney median apartment price as Melbourne equivalent values ​​fell 14 percent

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