Managing director of the Finance Brokers Association of Australia (FBAA) Peter White AM says recent figures showing more than half of the 500,000 mortgage holders who deferred their repayments have not resumed them, should prompt brokers to “have an important conversation with their clients”.

He said while the news is good for those who have started paying again, it emphasises the sad expected consequence of the impact of COVID-19.

“I get that there is an upside to the economy and the property market with this news, but as brokers we must also think of those clients who are a part of the majority of people who still haven’t been able to recover.

“We have a role to play to ensure that our clients don’t default, and time is running out for those who are still struggling.”

Pointing out that the payment holidays will end soon, he explained that as time moves forward, options for borrowers who can’t pay become more limited, particularly given the Government’s consistent comments that it will discontinue JobKeeper and JobSeeker early in the new year.

“I’d ask a client to be realistic about their situation and their prospects of being able to ger a new job, or increasing their business revenue or whatever the situation is for them.

“If they can’t see anything changing, they may need to talk to their lender about further extensions, or in the worst scenario seek specialist advice from their accountant, financial planner or lawyer and look at whether it is better to get out of the property market momentarily until they get back on top and can re-enter it.”

Mr White stressed that while this would be a drastic measure, the alternative of defaulting on a mortgage and being placed into mortgagee in possession is far worse.

“I know that brokers will be there for clients in difficult times as well as good times, and it seems like now is a perfect time for the industry to provide even greater expertise and guidance.”