Australian banks have agreed to offer a 12 month period of relief from mortgage payments to workers who have lost their jobs. There are also some other measures under consideration, including reducing repayments , extending mortgage contract periods and providing interest-only repayment options on other loans.

But smaller banks, credit unions, building societies and non-bank lenders, who make up 20 per cent of the mortgage market, are not part of the deal negotiated by Treasurer Wayne Swan.

Prime Minister Kevin Rudd says it will be up to the banks to decide which of its borrowers gain relief. "Banks will make assessments based on the borrower's ability to meet new contractual obligations in the long term," Rudd said.