mortgage holiday

The banks call this a home loan deferral.  It is not new but became a big factor in easing the strain on family finances in March 2020.

 The idea is that the bank gives you a ‘holiday’ from making loan repayments.  Usually this is done for a short period, perhaps three months, but with the prospect of COVID-19 being with us for some time to come, the banks offered holidays of up to a year.  The loan still accrues interest and fees, so the amount that you eventually pay is greater than it was. To deal with this the bank can renegotiate the term of the loan so that you pay the same amount but for a longer period.

 The holidays are about to end at the end of March 2021.