Bank to provide mortgage relief for new borrowers

In a tie-up with insurance company BNP Paribas Cardif, Sumitomo Mitsui Trust Bank will soon start offering a mortgage payment exemption option for borrowers who have been fired or lost their job due to corporate bankruptcy.

The program will be made available from November 2020 to new customers that take out a home loan with illness coverage and provided at no extra cost. Approximately half of the bank’s customers include illness insurance with their loans. It will allow affected borrowers to seek an exemption from loan repayments for up to 3 months. This is part of the bank’s measures to support customers that may have been affected by the economic impact of the coronavirus pandemic. Many banks have been providing mortgage payment deferrals and temporary payment reductions for borrowers, but this is the first domestic bank in Japan to provide payment exemptions. 

It is expected that this will provide peace-of-mind to younger, first-home buyers, who may have concerns about their long-term employment prospects.

Sources:
Jiji Press, September 2, 2020.
The Nikkei Shimbun, September 3, 2020.

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