Home Loans, Mortgage Refinance, Bad Credit Home Loans

Home Loan Arrears on full documentation mortgages have increased significantly during the December quarter. While mortgage delinquencies on non-conforming loans have reached a record high during the same period.

Arrears on full-documentation home loans of over 30 days increased to 1.75 per cent for the December quarter from 1.5 per cent during the June 2008 quarter. Arrears on non-conforming, low-documentation loans that are past 30 days due, now stand at a new record high of 19.73 per cent, reflecting the sector’s inability to refinance since the virtual closure of the low-documentation origination market.

It is expected that mortgage delinquencies will deteriorate further during the March quarter . All this is despite...

According to a new industry report, more than 30,000 homes will be repossessed or foreclosed and almost half a million Australians plunged into severe mortgage stress by the end of 2009.

One third of the expected repossessions will be first time home buyers who bought in the last 12 months.  The main reason for this is the projected unemployment growth from  the current 5.2%  to 7.5% by the end of 2009.
Those that lose their job will  have to fall back on savings.  While some will be able to ride it out but for (many) it will be much more difficult.
Home owners should seek financial assistance as soon as they experience mortgage stress.  However many ignore the problem, leaving it too late for any help to be effective.

Australian MORTGAGE brokers are being forced out of the industry because of shrinking market share as well as reduced brokerage commissions being paid by the major lenders.

The departure of so many mortgage brokers has raised concerns that the big four banks are tightening their grip on the mortgage industry and this in turn will lessen competition for home lending.

The market share of non-bank lenders shrank to 6.8 per cent by December 2008, from 21.2 per cent of lending commitments to owner occupiers in July 2007, which was just before the global financial began.

As the global financial crisis escalated, total home lending commitments fell by almost 15 per cent last year in Australia, from $264 billion in 2007 to $225 billion in 2008.

The fall in lending commitments during 2008 put upfront commission under pressure, with the major banks significantly cutting their...

Recent changes announced by Mainstream lenders mean that First Home Buyers are no longer able to borrow 100% of the purchase price of their new home.  Mortgage insurance requirements set that loan applicants must have at least 3% of the purchase price as ‘genuine savings’ put together over at least 3 months.