Government considers FNPF relief for home loans
Minister, Aiyaz Sayed-Khaiyum says the government does not want to see families lose their homes to mortgagee sales and therefore discussions are underway with the FNPF.
It is understood this could assist hundreds of families who have existing home loans, and were struggling to repay the bank due to COVID-19.
Sayed-Khaiyum says they are aware of banks reviewing their stand on loan re-payment holidays and deferred payments.
“We are meeting up with them next week. There’s obviously various matters we have to talk about. We also are currently talking with FNPF in respect of giving FNPF members in particular those who are currently unemployed as a result of COVID-19, in respect of how we can help them with their mortgage repayments and also there are some individuals and couples for example who may be in some particular dire strait regarding repayments in particular for home mortgages and we are concerned about it. We don’t want people to keep their pension but don’t have a roof over their head and lose their homes so that’s very important for us.”
He says the FNPF is also liaising directly with the banks to see how many home mortgages remain.
“In particular home mortgages that could be behind in repayments as a result of people being unemployed. So we hope to make some announcements in that space very soon. Because we are acutely aware of the situation of some people. So we are meeting with the banks next week and we are also resolving this matter pertaining to in particular home mortgages.”
Earlier this year, the government had convinced banks and higher purchase companies to defer loan repayments for up to six months for customers who were financially affected by COVID-19, either due to job losses or pay-cuts.
These included mortgages, personal loans and higher purchase loans from stores like Courts, Carpenters, Vinod Patel and other similar outlets.
For that were hit, the hardest, principal plus interest payments were all deferred as well.
Credit: FBC
Date: 18/11/2020
