The Government wants to make it easier for you to get a mortgage amid the coronavirus recession — but there's a catch
4 years, 5 months ago

The Government wants to make it easier for you to get a mortgage amid the coronavirus recession — but there's a catch

ABC  

It will soon be easier for Australians to take out mortgages and refinance their home loans while small businesses will be able to access more money under Federal Government plans to change credit laws, to mitigate the effects of the COVID-19 pandemic. Key points: The Government says the current credit laws are outdated, particularly during the COVID-19 crisis The Government says the current credit laws are outdated, particularly during the COVID-19 crisis The changes will remove the burden on banks to ensure people do not take out loans they cannot afford The changes will remove the burden on banks to ensure people do not take out loans they cannot afford The policy area has been contentious since the global financial crisis But the changes will also remove some of the burden on banks to ensure people do not enter into loans they cannot afford to pay back. The Federal Government said the current credit laws are outdated, particularly given the economy has been plunged into recession because of the pandemic. But the Government said strong consumer protections would be maintained under the law changes and credit providers would still need to comply with their existing licensing obligations to act efficiently, honestly and fairly.

Government Consumer Protection Credit Bank Loans Changes Covid Banks Laws Debt Collectors  covid19  amid  credit  financial  changes  coronavirus  catch  laws  banks  bank  remove  mortgage  recession  current  wants  loans  easier  theres

History of this topic

Jim Chalmers gloats the worst of the cost-of-living crisis is over... but these bleak figures reveal why millions of Aussies are still not celebrating
1 month, 2 weeks ago

Jim Chalmers gloats the worst of the cost-of-living crisis is over... but these bleak figures reveal why millions of Aussies are still not celebrating

Daily Mail  

Treasurer Jim Chalmers says the worst of the inflation crisis is over, despite new evidence showing one in two Australians are cutting back on groceries. Among this group of unprepared borrowers, almost half or 48 per cent of them had cut back on spending for essential items, like groceries and power bills despite the federal government's $300 electricity rebates. Treasurer …

Easing lending rules would make it easier for first home buyers, but would it create financial instability?
4 months, 1 week ago

Easing lending rules would make it easier for first home buyers, but would it create financial instability?

ABC  

As the Reserve Bank meets to consider whether to follow in America's footsteps and cut interest rates, housing affordability is again centre stage of the political debate. They point a worsening picture of mortgage stress picture now that the Reserve Bank has raised the official cash rate to 4.35 per cent and variable interest rates are hovering around 6 per …

ANZ chief executive's dire warning for Australian home borrowers
10 months, 1 week ago

ANZ chief executive's dire warning for Australian home borrowers

Daily Mail  

ANZ chief executive Shayne Elliott has warned the bank is expecting more borrowers to struggle to repay their mortgage and fall into financial stress. ANZ chief executive Shayne Elliott has warned the bank is expecting more borrowers to struggle to repay their mortgage Mr Elliott also blamed the June 2022 expiry of the former Coalition government's low and middle-income tax …

Is one solution to mortgage hardship making it easier for people to get a home loan? Mortgage brokers and the big banks think so
10 months, 1 week ago

Is one solution to mortgage hardship making it easier for people to get a home loan? Mortgage brokers and the big banks think so

ABC  

The horror stories of consumers in financial strife that emerged during the banking royal commission more than five years ago led to stronger regulations aimed at better protecting consumers, and caps on bonuses paid to bankers. Calls to roll back responsible lending laws met with concern The other regulation that restricts a bank's ability to lend are responsible lending laws, …

RBA Financial Stability Review says Australia's banks safe even as up to 85,000 borrowers risk running out of cash
11 months, 3 weeks ago

RBA Financial Stability Review says Australia's banks safe even as up to 85,000 borrowers risk running out of cash

ABC  

In short: Around 5 per cent of mortgage borrowers currently spend more than they earn on essentials and their mortgage, and more than 2 per cent could run out of savings by the end of next year. Around 5 per cent of mortgage borrowers currently spend more than they earn on essentials and their mortgage, and more than 2 per …

Nearly 5m households to face even higher mortgage costs, says Bank of England
1 year, 3 months ago

Nearly 5m households to face even higher mortgage costs, says Bank of England

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Almost five million UK homeowners …

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk
1 year, 5 months ago

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk

ABC  

Australian homes and businesses are vulnerable to financial stability risks as rising inflation and interest rates continue to pressure the global economy. Key points: Australia's financial system is well-placed to deal with global economic shocks The share of households falling behind on their mortgage payments has picked up a little Despite rising rates, the vast majority of households are servicing …

Young renters under most strain, but full mortgage pain yet to be felt, warns CBA boss
1 year, 8 months ago

Young renters under most strain, but full mortgage pain yet to be felt, warns CBA boss

ABC  

Renters are facing more financial pressure than households with a mortgage at the moment, Commonwealth Bank chief executive Matt Comyn says. Key points: A little more than 60 per cent of the RBA's rate increases have been felt by households so far Renters are facing more financial pressure than households with mortgages There has been a small increase in customers …

Mortgage rates soar again to surpass Liz Truss mini-Budget peak
1 year, 8 months ago

Mortgage rates soar again to surpass Liz Truss mini-Budget peak

The Independent  

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Rishi Sunak acknowledged “things are difficult” for families struggling with …

Bank of England says UK banks are resilient enough to offer struggling households support
1 year, 8 months ago

Bank of England says UK banks are resilient enough to offer struggling households support

Associated Press  

LONDON — The Bank of England warned Wednesday that U.K. households are facing mounting financial difficulties from the sharp increase in interest rates but expressed hope that the country’s biggest banks are resilient enough to offer more help than they could before the global financial crisis 15 years ago. In its half-yearly financial assessment, the central bank said British households …

Mortgage crisis to deepen as Bank unexpectedly hikes interest rates to 5%
1 year, 8 months ago

Mortgage crisis to deepen as Bank unexpectedly hikes interest rates to 5%

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “But if we don’t raise rates now, it could …

Government under fire over mortgage crisis as Bank set to hike rates again
1 year, 8 months ago

Government under fire over mortgage crisis as Bank set to hike rates again

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. With the Government and Bank of England under rising …

The Mortgage Trap: Help us investigate lending practices in Australia
1 year, 10 months ago

The Mortgage Trap: Help us investigate lending practices in Australia

ABC  

During the pandemic, as house prices surged, many Australians took out very large home loans while interest rates were at historic lows. We want to know whether improper lending practices have contributed to the current financial stress that borrowers are experiencing. We want to examine whether existing policies and regulations provide adequate protection for consumers, or whether they need to …

Interest rates surge hits younger borrowers as FCA warns half a million are struggling to pay
2 years ago

Interest rates surge hits younger borrowers as FCA warns half a million are struggling to pay

The Independent  

I wonder if they quietly cheer Swati Dhingra and Silvana Tenreyro down at the Financial Conduct Authority? The pair are external members of the Bank of England’s rate-setting Monetary Policy Committee and have been its leading doves on interest rates during the current cycle. She blamed the surge in inflation, now at 10.1 per cent, on higher energy and import …

Million households 'vulnerable' to rising interest rates, and their cuts could cause recession
2 years, 1 month ago

Million households 'vulnerable' to rising interest rates, and their cuts could cause recession

ABC  

Recent home buyer Lorna Zelenak is about to head overseas for a short trip, but she wouldn't be making the same plans today. Key points: AMP chief economist Shane Oliver estimates 1 million households will have to cut spending significantly Stress about the cost of living is at a 4.5-year high, according to NAB Some forecasters now expect the RBA …

Interest rates are set to keep rising in 2023 but the RBA is playing with fire
2 years, 1 month ago

Interest rates are set to keep rising in 2023 but the RBA is playing with fire

ABC  

Late last November, Reserve Bank governor Philip Lowe was forced into a humiliating public apology. If the official rate hit 3.6 per cent, it found that just over half of all homeowners on variable mortgage rates would see a more than 20 per cent reduction in spare cash flow. That would be chaotic and you can bet your life the …

Lenders have ‘obligation’ to support struggling borrowers, Bank governor says
2 years, 2 months ago

Lenders have ‘obligation’ to support struggling borrowers, Bank governor says

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Mortgage debt and home repossessions are much lower than during …

Has Australia's housing boom hit the end of the road and could it take the economy down with it?
2 years, 2 months ago

Has Australia's housing boom hit the end of the road and could it take the economy down with it?

ABC  

While Argentina may have dispatched Australia to go on and win football's World Cup, there is one kicking contest where we are undisputed world leaders – that's economic can kicking. Many fixed mortgage rates were below 2 per cent, some for terms as long as four years, and the Reserve Bank governor had said repeatedly that rates were unlikely to …

Higher interest rates for struggling borrowers set to compound mortgage woes
2 years, 2 months ago

Higher interest rates for struggling borrowers set to compound mortgage woes

ABC  

Hundreds of thousands of the most vulnerable mortgage borrowers risk being locked into uncompetitive interest rates as falling property values reduce or remove their ability to refinance. Key points: The cheapest variable rates in the market are generally only available to borrowers with more equity in their homes Many existing borrowers will be unable to refinance at all without taking …

A fork in the road for mortgage borrowers: Spend cash buffers to meet higher repayments or cut back on spending?
2 years, 3 months ago

A fork in the road for mortgage borrowers: Spend cash buffers to meet higher repayments or cut back on spending?

ABC  

Money is being re-directed away from millions of Australians' bank accounts. It's that moment when you discover the majority of the Reserve Bank's interest rate increased have now been applied to your home loan and extracted from your bank account. According to RateCity, if you factor in the entire 2.75 per cent Reserve Bank rate increases, the total extra monthly …

Why two-thirds of Australian home borrowers need to be worried as interest rates keep rising
2 years, 3 months ago

Why two-thirds of Australian home borrowers need to be worried as interest rates keep rising

Daily Mail  

Two-thirds of Australian home borrowers with a variable mortgage will be hit with more interest rates rises in coming months as ANZ predicts an 18 per cent house price plunge - but at least inflation may be easing. Two-thirds of Australia home borrowers with a variable mortgage will be hit with more interest rate rises in coming months - with …

Mortgage approvals fall to lowest level since Covid hit
2 years, 3 months ago

Mortgage approvals fall to lowest level since Covid hit

The Telegraph  

The mortgage market chaos following Liz Truss's mini-Budget pushed down approvals for home loans to their lowest level in more than two years in October. The figures cover the period immediately after Kwasi Kwarteng delivered the mini-Budget when lenders withdrew hundreds of mortgage products and rates were pushed up in response to expectations for aggressive Bank of England action. Forecasters …

Why Australian banks are slashing fixed-rate home loans despite successive interest rate rises
2 years, 7 months ago

Why Australian banks are slashing fixed-rate home loans despite successive interest rate rises

ABC  

It may have gone largely unnoticed among the screeching sirens and the roar of emergency vehicles — but interest rates actually fell last week. In the rush to deliver the bad news on a hugely telegraphed double hike in the official cash rate — which the big four banks passed on in full on their variable rates — most news …

Interest rate rises will see property prices fall further as maximum home loan sizes shrink
2 years, 7 months ago

Interest rate rises will see property prices fall further as maximum home loan sizes shrink

ABC  

Property prices may be dropping but that doesn't mean that wannabe home owners are suddenly celebrating. Key points: The Reserve Bank is set to hike the cash rate again today Banks are already winding back mortgage limits as interest rates and inflation rise Mortgage brokers say a 'feedback loop' is emerging in the property market Lenders are simultaneously winding back …

APRA warned Albanese government about 'heightened' housing risks as interest rates rise
2 years, 7 months ago

APRA warned Albanese government about 'heightened' housing risks as interest rates rise

ABC  

The banking regulator warned the incoming Albanese government that it would face "heightened" risks in the housing market as interest rates rise. Key points: The banking, insurance and superannuation regulator prepared an incoming-government brief in May The document warned the Albanese government that housing market risks were "heightened" due to rising rates APRA said banks were well placed to weather …

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge
2 years, 7 months ago

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge

ABC  

The Reserve Bank's deputy governor is confident that most mortgage borrowers can cope with rapidly rising interest rates, even as analysts suggest many households could soon face $1,000 a month or more in extra repayments. Key points: Almost a third of borrowers could face a 40 per cent increase in monthly mortgage repayments next year Monthly repayments could increase by …

Interest rates are rising: Is the RBA at fault for allowing Australians to take on too much debt?
2 years, 8 months ago

Interest rates are rising: Is the RBA at fault for allowing Australians to take on too much debt?

ABC  

Can we blame Australians for being a little confused about the Reserve Bank's messaging on interest rates? Towards the end of 2020 and for nearly all of last year, Reserve Bank Governor Philip Lowe said interest rates would not likely rise until 2024. In November and December 2020, Dr Lowe said in the bank's monetary policy decision statement that the …

As fixed mortgages end and rates rise, many risk losing their homes
2 years, 8 months ago

As fixed mortgages end and rates rise, many risk losing their homes

ABC  

Sarah Ibrahim is worried about what will happen when her fixed rate ends in January. As interest rates rise, almost 300,000 people who took large and risky home loans during the pandemic could fall into severe financial hardship or even default. "We're already seeing banks ramping up their action to enforce mortgage debts and repossess homes already against the background …

New warnings over mortgage imprisonment as lenders tighten borrowing
2 years, 11 months ago

New warnings over mortgage imprisonment as lenders tighten borrowing

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. These figures are used to determine how much an …

Reserve Bank holds interest rates for now but home owners brace for mortgage shock
2 years, 11 months ago

Reserve Bank holds interest rates for now but home owners brace for mortgage shock

ABC  

The Reserve Bank has left the official cash rate on hold near zero, but borrowers are already bracing for what life may look like with higher mortgage interest rates. Key points: The Reserve Bank has left its benchmark cash rate on hold at 0.1pc The RBA dropped a reference to being "patient" before raising rates, but said it would look …

What's wrong with Australian mortgages? They're fixed for shareholders, not home owners
3 years, 1 month ago

What's wrong with Australian mortgages? They're fixed for shareholders, not home owners

ABC  

If you're paying off a mortgage — or aspiring to — imagine if you didn't have to worry so much about rising interest rates. Instead of having to wait and see if their central bank raises rates each month, a US 30-year fixed mortgage at 2 per cent will still have the same monthly repayment — even after a rate …

Why Australians needn't panic about possible interest rate rises as RBA ponders next step
3 years, 1 month ago

Why Australians needn't panic about possible interest rate rises as RBA ponders next step

ABC  

They say talk is cheap, although for the past few years, it hasn't been quite as cheap as cash. Central banks lost control a year ago It's an easy mistake to make; to believe central banks are all-powerful and dictate the direction and size of interest rate movements. A year ago, the 10-year government bond rate – often called the …

Reserve Bank 'prepared to be patient' as interest rates kept at record lows into 2022
3 years, 3 months ago

Reserve Bank 'prepared to be patient' as interest rates kept at record lows into 2022

ABC  

The Reserve Bank has left its official interest rate target on hold at a record low 0.1 per cent and will continue its $4-billion-a-week bond-buying stimulus program until at least mid-February. Key points: The RBA has left the cash rate on hold at 0.1 per cent for the 12th consecutive meeting The bank will review its $4 billion bond-buying program …

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ
3 years, 3 months ago

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ

ABC  

ANZ bank has tipped house price falls the year after next as the pandemic boom in Australian housing comes to an end. Key points: ANZ tips housing prices will rise 21 per cent this year, 6 per cent next and fall 4 per cent in 2023 The bank says more homes on the market for sale, reduced affordability and rising …

Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge
3 years, 5 months ago

Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge

ABC  

The Treasurer has given the strongest indication yet that a home loan crackdown is looming, confirming that surging house prices were a key topic of discussion at a regulators' meeting on Friday. Key points: Treasurer Josh Frydenberg says the Council of Financial Regulators discussed the recent surge in home prices last week Analysts expect the council to announce new home …

Loan defaults drop below pre-pandemic levels
3 years, 7 months ago

Loan defaults drop below pre-pandemic levels

The Independent  

Sign up to our free money newsletter for investment analysis and expert advice to help you build wealth Sign up to our free money email for help building your wealth Sign up to our free money email for help building your wealth SIGN UP I would like to be emailed about offers, events and updates from The Independent. And yet …

Why the Reserve Bank and the federal government don't see eye to eye on Australia's coronavirus recovery
4 years ago

Why the Reserve Bank and the federal government don't see eye to eye on Australia's coronavirus recovery

ABC  

These are unusual times. As the federal government is adamant that stimulus needs to be wound back, to allow the private sector to take over in the recovery, the Reserve Bank is doubling down, arguing that it will be years before Australia can wean itself off the emergency interest rates that have sunk to zero. Responsible lending not responsible Ever …

Fears of a debt disaster as property market runs hot and changes to safe lending laws loom
4 years ago

Fears of a debt disaster as property market runs hot and changes to safe lending laws loom

ABC  

Jacob had big dreams before the global financial crisis. The Greens said the bill was "designed to let the banks get on with writing loans as big as they possibly can, whether it's good for people or not". "The banks have reduced what they were assessing loans at — in 2018 it was closer to 8 per cent, but now …

The ticking time bomb threatening 900,000 Australian borrowers
4 years ago

The ticking time bomb threatening 900,000 Australian borrowers

Daily Mail  

A mortgage time bomb is threatening almost 900,000 Australian home borrowers who are behind on their repayments - and it could get worse from next month. Despite interest rates being at a record low of 0.1 per cent, 31 per cent of Australians with a home loan are in arrears, a survey by financial comparison website Finder found. Pictured is …

House prices to bounce back in 2021 after modest falls during coronavirus pandemic, CBA predicts
4 years, 6 months ago

House prices to bounce back in 2021 after modest falls during coronavirus pandemic, CBA predicts

ABC  

Australia's biggest home lender says house price falls so far during the pandemic have been surprisingly small, and its internal modelling is predicting a quick rebound everywhere except Melbourne. Key points: CBA is now forecasting a 6 per cent fall in capital city property prices due to COVID-19, down from 10 per cent initially But the bank warns that Melbourne …

Commonwealth Bank of Australia impaired loan expenses double because of coronavirus crisis
4 years, 7 months ago

Commonwealth Bank of Australia impaired loan expenses double because of coronavirus crisis

Daily Mail  

The fragility of Australia's economy has been laid bare as the biggest home lender revealed the cost of troubled loans had doubled because of the coronavirus recession. The Commonwealth Bank's rate of troubled home loans has doubled as the coronavirus recession hits the ability of younger borrowers to repay their mortgages The major banks in March offered struggling borrowers six-month …

Banks hesitant to give mortgages to people working in Covid affected sectors
4 years, 7 months ago

Banks hesitant to give mortgages to people working in Covid affected sectors

NL Times  

Prospective homeowners who work in one of the sectors hit hard by the coronavirus crisis, may find it even more difficult to get a mortgage. All lenders now use an extra coronavirus questionnaire that mortgage applicants have to complete, and ING and ABN Amro even require employers to sign a statement saying they don't intend to fire the applicant, RTL …

Debt and deficit go out the window as the reality of the coronavirus crisis hits home
4 years, 7 months ago

Debt and deficit go out the window as the reality of the coronavirus crisis hits home

ABC  

When will it finally sink in? As Treasurer Josh Frydenberg and Finance Minister Matthias Cormann grimly fronted a media pack in Canberra, fresh after releasing Treasury's latest tally of COVID-19's financial toll, they were peppered with endless questions about how we will ever dig ourselves out of debt after all this Federal Government largesse. Debt, debt and more debt Having …

Australia records 2,192 COVID-19 cases in a week, Scott Morrison announces JobKeeper, JobSeeker changes
4 years, 7 months ago

Australia records 2,192 COVID-19 cases in a week, Scott Morrison announces JobKeeper, JobSeeker changes

ABC  

Let's say you've been relying on JobSeeker or JobKeeper for the past few months and today comes the announcement that those payments are going to continue, but be reduced, or maybe even end for you completely. The University of Canberra's Gregory Mowle, a financial literacy researcher and former ASIC consumer credit educator and financial counsellor, has some advice on what …

Coronavirus recession leaves 1.4m Australians in mortgage stress, almost 100,000 could default after JobKeeper ends
4 years, 9 months ago

Coronavirus recession leaves 1.4m Australians in mortgage stress, almost 100,000 could default after JobKeeper ends

ABC  

Mortgage stress levels among Australians have continued to soar amid the global outbreak of COVID-19, with data showing more than 1.4 million Australian households are now in mortgage stress and almost 100,000 could soon default on their loans. Key points: Young families and first-time buyers are among those most exposed to defaulting on their home loans There are fears the …

Commonwealth Bank home loan repayment cut sparked by coronavirus may hit borrowers
4 years, 10 months ago

Commonwealth Bank home loan repayment cut sparked by coronavirus may hit borrowers

ABC  

A financial expert has warned bank customers could end up paying tens of thousands of dollars more on their home loans because of a change to repayment levels by the Commonwealth Bank. Key points: The CBA is dropping home loan repayments for 750,000 customers It is one of several changes made in response to the COVID-19 pandemic But financial experts …

The Trump administration may turn a health crisis into a housing crisis (opinion)
4 years, 11 months ago

The Trump administration may turn a health crisis into a housing crisis (opinion)

CNN  

Editor’s Note: Mike Calhoun is the president of the Center for Responsible Lending. To give one a sense of the amount of money we’re talking about, if just one in four families with a mortgage takes Congress up on their offer of mortgage forbearance for six months, mortgage servicers will have to cover payments of more than $70 billion. Widespread …

Is your money safe in Australian banks during the coronavirus pandemic?
4 years, 11 months ago

Is your money safe in Australian banks during the coronavirus pandemic?

ABC  

While the coronavirus pandemic is primarily a public health issue, it's having a major impact on the economy and the financial system. "Don't withdraw all your savings because you'll just end up with $10,000 in cash under your mattress and that's probably quite unsafe," Professor Holden said. Professor Holden said the scheme was introduced after the global financial crisis in …

Analysts believe banks can withstand coronavirus shock but high debt levels leave few buffers
4 years, 11 months ago

Analysts believe banks can withstand coronavirus shock but high debt levels leave few buffers

ABC  

It's the sharpest and swiftest economic downturn anyone alive has seen — a sudden shutdown of large swathes of the economy, with a property price crash looming, businesses collapsing and jobless rates forecast to hit levels akin to the Great Depression. Key points: Analyst Brian Johnson says Australian banks are holding more cash than they used to The Reserve Bank …

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