Browse Forums Home Finance 1 Apr 05, 2009 9:29 am http://www.news.com.au/business/money/s ... 52,00.html Not sure if you have heard about this yet, but I think this is a great step and should give a lot of us some more confidence while we borrow more money than makes sense. Definitely eases my mind a little if it kicks in and is done right Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. Re: Loan Repayments Freeze for those made redundant 2Apr 05, 2009 10:27 am I think it's an excellent proposition because none of us knows what's around the corner. This sort of arrangement could be very beneficial to someone who was unexpectedly widowed aswell. Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Loan Repayments Freeze for those made redundant 4Apr 06, 2009 1:51 am This is simple but great idea from the government. It should also be beneficial for the banks as they will minimise LMI claims when borrowers lose their jobs. However, I would like to read their criteria for choosing who will be accepted. Quote: "Of course, these options won't be appropriate in every case, and banks will make assessments based on the borrower's ability to meet new contractual obligations,'' he says. Re: Loan Repayments Freeze for those made redundant 5Apr 06, 2009 12:20 pm Almost all lenders have hardship provisions, they just haven't been making them public. The Association of Building Societies and Credit Unions has made an announcement confirming that they already comply with all of the principals of Kev's plan. There are only one or two lenders that are completely heartless when someone loses their job or has some kind of major accident which causes them to miss payments. Also note that if you borrow 95% or 100% of the purchase price then banks will be very quick to repossess your home if you miss payments whereas if you borrow 80% then the bank is less likely to lose money so will tend to work with you. Re: Loan Repayments Freeze for those made redundant 6Apr 06, 2009 12:34 pm This system is just formalising what the banks do naturally. If you have sufficient equity in your home, and you can't pay your mortgage they capitalise the interest as it accrues - meaning they add it to what you owe. So if your interest is $2,000 per month and your home is worth $400,000 but you owe $390,000 you won't get it and they will likely foreclose. But if your home is worth $450,000 and you owe $390,000 you will get it - but you will owe $412,000 (plus compound interest) in 12 months. Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Loan Repayments Freeze for those made redundant 7Apr 06, 2009 1:56 pm ed @ EcoClassic This system is just formalising what the banks do naturally. If you have sufficient equity in your home, and you can't pay your mortgage they capitalise the interest as it accrues - meaning they add it to what you owe. So if your interest is $2,000 per month and your home is worth $400,000 but you owe $390,000 you won't get it and they will likely foreclose. But if your home is worth $450,000 and you owe $390,000 you will get it - but you will owe $412,000 (plus compound interest) in 12 months. Ed Ed, some lenders do have Repayment Holidays as an option but not on all loans and certainly not across all major banks. 12 months without charging default interest. This seems a bit more than what already exists and I would like to see the details as it comes out. Re: Loan Repayments Freeze for those made redundant 8Apr 13, 2009 10:41 pm Although this initiative sounds like they are trying to be nice to home buyers I think they have a duty to offer this security as they are encouraging us to buy homes now to help the economy and jobs in Australia. Who's going to buy the white goods and furniture if not us first home buyers? The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18896 https://form.jotform.com/240284569218058 Please spare a moment to fill out this survey form for a project. You stand a chance to win a digital gift voucher. Legitimate… 0 2813 i imagine you also have another contract with an architect? and yeah, whatever other's said about special conditions and appendices 16 15978 |