5 Apr 2009

Rudd's deal to help struggling homeowners

8:05 pm on 5 April 2009

Australia's Prime Minister, Kevin Rudd, has announced a deal with major banks to help homeowners who lose their jobs during the global downturn.

A day after returning from the G20 summit in London, Mr Rudd gave details of the plan in Melbourne's south-east, where unemployment rose by 15% in January.

Under the plan, people who lose their jobs will be able to postpone mortgage repayments for up to a year.

They can also be eligible for concessions on debts such as car loans.

Australia's major banks - Westpac, ANZ, Commonweath and National Australia Bank - have agreed to the deal.

But they still have the power to reject mortgage postponements if they consider it is a financial risk.