Loan repayment holidays of up to six months will be offered by Bank of us to help customers doing it tough due to coronavirus.
The Tasmanian bank will also cut fixed term mortgage rates, while declining to pass on the Reserve Bank's emergency 0.25 percentage point cash rate cut to home loan borrowers on variable interest rates.
The bank did pass on a cut of the same size in full to variable rate borrowers earlier this month.
"We have supported Tasmanians for 150 years through good times and bad, and we want to assure our customers that we are here for them," chief executive Paul Ranson said..
"We understand that these are challenging times, and this is not a time for a one size fits all solution.
"We know everyone's circumstances are different; that's why we are encouraging our customers who are doing it tough as a result of COVID-19 to talk to us, so we can help them get back on track."
The bank announced various financial support measures for customers affected by the financial fall-out from the virus.
- offering up to six months' payment deferral on loan repayments;
- allowing customers to continue to access redraw balances for free; and
- an option to convert from a principal and interest loan to interest only.
Mr Ranson said the bank had cut its fixed loan interest rates (by up to 0.79 percentage points), giving customers the option of fixing their home loans at its lowest ever rate of 2.59 per cent for two years.
He left open the door for potential further measures.
"As the only Tasmanian customer-owned bank, we have a long and proud history of supporting our customers and the Tasmanian community and we will continue to monitor the impact of COVID-19 on our customers during these unprecedented times," he said.