Italy suspends mortgage payments amid corona lockdown | Hacker News Reader

Italy suspends mortgage payments amid corona lockdown

independent.co.uk

24 pointssurfer778 comments

How common is it to pay mortgage/rent in person in other parts of the world? I would think that something as serious as a mortgage payment would automatically be deducted from the payer's bank account so they don't have to worry about it. Or am I assuming too much?

What about other recurring services that also has to be paid?

Mortgage payments are being suspended to ease the financial burden on people rather than because people make payment in person.

Two banks in the UK have already voluntarily announced similar measures. Not that it's a particularly altruistic measure - payment holidays result in more interest being paid over the lifetime of the mortgage...

It's still a strange thing to do for me. Dunno. Maybe I'm tone-deaf.

Are people not allowed to work, thus not getting salaries during this month, thus needing the payment holiday?

What about those who are in a position to still earn a salary during this time, like remote workers. Are they now forced to not pay their mortgage, or can they pay like normally?

Like you said, the interest on that one payment holiday is shocking!

Below calcs are for my home country, South Africa:

R1,000,000 loan, 20 year mortgage, results in a ~R9,700/month payment. Skipping one month within the first two years of this term results in additional interest of more than R60,000 and extending the term by at least 7 months.

The article states that the country is on lockdown, and there are fines for violating that. I assume a very significant portion of the workforce cannot work from home, and I didn't see anything about pay being continued if you can't work.

I don't know anything else about the state of things, but I'm sure automated systems and things that can be done remotely are allowed to continue, so if you want to pay your mortgage, I'm sure you can continue to do so.

Consider people outside of tech, like restaurant workers who only get paid for the hours worked. Restaurants are likely to be closed or run on reduced staff due to fewer people going out for dinner. All of a sudden whatever money they have in their bank accounts must cover their living expenses until this is over and things pick up again.

There are lots of other industries similar to that.

Would love to see my rent payments suspended. Am I elligible to join the protected class?

I doubt they would do it that way. I suspect you could just stop paying and not be evicted.

Must be nice. What about the poor renter schmucks?

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