Home Loan

Almost a quarter of home loan borrowers have had difficulty meeting their mortgage repayments over the past year, according to a survey published yesterday.

The latest Genworth Financial Mortgage Trends Report reveals that two per cent of borrowers had difficulty meeting repayment in every month in the past year. read more

The Australian Council of Trade Unions (ACTU) has accused banks of fuelling the credit crisis by forcing staff to push mortgages onto people who cannot afford them.

The ACTU’s submission to the Federal Government says some bank workers’ pay, under individual contacts, is being tied to the number of loans they secure.

ACTU president Sharan Burrow says the practice is contributing to the debt spiral and the number of families unable to cope.

Ms Burrow says better regulation is needed to protect customers from risky loans.

“It doesn’t seem appropriate that when people are making life decisions about taking out credit to invest in their future, that they are then subject to an employee, who in turn is pressured for performance bonuses,” she said.

“We think that you’ve got to look at responsible lending practices right across the board.”

BIG banks are routing non-bank lenders in the battle for home loan market share, winning back large chunks of business once lost to their more nimble and cheaper competitors.

In a reversal of a decade, banks are now writing 17 out of every 20 new housing loans — close to 85 per cent — as their mortgage competitors struggle with the burden of higher wholesale funding costs brought on by the US economic crisis.

Aussie Home Loans, once the biggest thorn in the side of the banks, this week launched a “We’ll match you” advertising campaign to try to stem the loss of market share.  read more

The slump in home loan growth led a general slowdown in credit, with increases in total borrowing at a three-year low and personal loans growing at their slowest pace in six years, The Australian reports.

Economists predict the Reserve Bank will keep the official cash rate steady at a 12-year high of 7.25 per cent today but are divided about whether borrowers can expect further rate pain over the next six months. read more

Australia’s delinquencies on mortgages to people with good credit histories rose in February to the highest in 11 months. read more

GE MONEY has confirmed it may sell Wizard Home Loans less than four years after buying the lender, in a sign of the mounting challenges facing the non-bank mortgage sector. read more

Wizard Home Loans is to be offered for sale with an announcement expected this week, The Australian reports.

GE Money, which owns the mortgage lender, has opted for the sale to stave off a bid by Wizard founder and current chairman, Mark Bouris, who is seeking to take back control of the company.

Mr Bouris was believed to have asked GE to pay him millions of US dollars upfront to run the business - plus a stake in the company - so he could sell it at a later date, The Australian reported on Monday.

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Credit ratings agency Fitch Ratings says the Australian prime mortgage market showed an increase in delinquencies in the first quarter of 2008.

Fitch said 30-plus day delinquencies increased to 1.31 per cent in the quarter, from 1.07 per cent at December 31, 2007. read more

Home loans are no longer just about signing up for 25 years and making regular payments — nor even just about trying to pay off the loan as quickly as possible.

For some people, flexibility and peace of mind are just as important, and there are a range of home loan options that offer such benefits. However, these extras cost money, and the key feature for most people is still the interest rate.

Finding the right mortgage may take some time, but it can save a lot of money and stress. This report will help you narrow down what type of loan will suit you best. read more