Home Loans, Mortgage Refinance, Bad Credit Home Loans

Hundreds of bank customers are about to launch a class action against their banks accusing them of acting outside of legislation when approving their home loans.

According to almost 300 borrowers and their families, banks have offered them loans which are outside of bank guidelines and which should not have been offered and now, the borrowers are facing losing their homes and some have already lost their homes because they are unable to afford their home loans.

Retired British insurance broker Roger Brown, who is orchestrating the case, has set up a website takingonbanks.com and is currently seeking claimants.

According to Mr Brown, many home and property owners are currently experiencing financial hardship through no fault of their...

While there is significant demand for no deposit loans and 100% home loans, lenders are unlikely to radically change lending criteria over the coming year.

Genworth Financial chief executive Ellie Comerford told the AFR that not withstanding the poor growth levels of 2011, there was an some minor improvement in demand for housing and consequently home loans towards the end of 2011. Much of the new demand was as a result of lender discounting. There is expectation that rates will be coming down further this year and lenders will maintain a high level of competition in the market.

Lenders are unlikely to start easing lending criteria given than many of the current restrictions were introduced in the aftermath GFC.

Lenders would be...

Non conforming unsecured personal loans are in huge demand, unfortunately there are no such loans available in Australia. Borrowers who have tried to borrow for debt consolidation or a holiday or just some spending money from their banks but were declined, are desperately trying to find a lender who would be able to help them online.

Unfortunately unsecured loans beyond a couple thousand generally have the same lending criteria no matter which lender the borrower makes an application through. There is simply no such financial product as a bad credit unsecured personal loan or a low doc unsecured personal loan.

If you have been declined for a personal loan with a bank because you have some paid defaults on your credit report, you will also be...

Experts believe that RBA will announce another cash rate cut in February.

According to recent domestic data, there is a real need for another rate cut, with both consumers and businesses are still low on confidence and high on caution. Loans is a dirty word with people spending less and saving more.

Another rate cut would take the official rate to only 4 per cent – 100 basis points above the lowest level ever

Overall the level of personal borrowing including personal loans, credit cards and car loans is down by over 1% during 2011.

“Australian consumers seem to have lost their interest in taking out loans for consumption and lifestyle purposes. Even the demand for loans to acquire assets is down.

“Housing credit...

The international credit ratings agency, Moodys, has yesterday reaffirmed that Australia will retain it’s AAA credit rating.

Australia’s “high economic resiliency and financial strength” and reasonably low debt levels were the key to Moody’s decision to retain its Australian rating at a health AAA level.

It followed last month’s upgrade of Australia’s credit rating to AAA by Fitch.

More than 500 European banks tapped the central bank’s credit program, accepting about 489 billion in loans.

Economists had expected the banks to take up about 300 billion in funds.

The development came after Moody’s warned earlier this week that Britain’s AAA rating could be under threat if the European crisis worsened.

A...

According to official figures published today, the number of home loans approved in Australia during the month of October has increased by 0.7 per cent to 51,981.

That was an increase from a downwardly revised figure of 51,639 in September.

Economists’ expected that the home loan numbers would remain unchanged from September to October.

The Australian Bureau of Statistics (ABS) said on Monday that total home loans value in terms of an overall dollar amount had declined by 2.5 per cent in October, seasonally adjusted, to $20.458 billion.

Given that interest rates were reduced twice in a row once in November and then in December, expectations are that home loans numbers will continue to increase once statistics will become available...

RBA had announced their decision to reduce the cash rate by another 25 basis points yesterday. This was a much anticipated decision welcomed by most sectors of the Australian Economy – in particular the struggling families carrying high levels of debt and a multitude of loans.

Many experts believe that this will not be the last cash rate reduction. Given the situation in Europe there are predictions that further cash rate reductions will be needed in the new year.

“The directional bias for interest rates from here will be down for the next two or three quarters. Hence, there is scope for another cut in rates to 4 per cent at the February meeting.”

The cut may be delayed for a month or two if the local economy continues to hold up. Or it might not happen at all. On the other hand,...

The heaviest burden facing Aussie families into the new year is the cost of living and their level of debt. This is the sentiment arising out of a recent consumer survey conducted by Mortgage Choice.

Consumers are especially concerned about being able to earn enough to cover the cost of utility bills. Many also expressed concerns with lack of job security and poor economic management skills of the Australian Government.

Survey participants have stated that over 50% have had to access their savings in order to cover the cost of living and repayments for car loans, home loans, credit cards, rental, school fees and day-to-day bills. Consumers look for debt consolidation loans to help them maintain control over their bills and repayment...

Despite the fact that Australian Lenders have discontinued no deposit home loans more than two years ago, many borrowers are still expecting to take a mortgage for the full purchase price of their property.

People without a deposit or with only a few thousand for deposit are hoping to borrow hundreds of thousands in order to purchase property. In the current economic climate lenders are even more conservative than they were years earlier.

Qualifying for home loans today is much more difficult than in the past, and rightfully so. The last thing that we want to see in Australia is a repeat of what happened in the US with thousands of people walking away from their homes because their home loans are substantially higher than the value of their homes.

Many people who had purchased a property in the past 3 years and borrowed 90% or more as a home loan, are...

Brokers should not be concerned about writing  low doc loans for their clients  according to Pepper’s director of sales and distribution Mario Rehayem.

Following a review of broker activity, last week ASIC had highlighted low doc loans as a growing area of compliance concern under the new NCCP.

According to ASIC, the major non-compliance risk associated with offering low doc loans was the steps taken by mortgage brokers to confirm applicants income.

While the ASIC review will undoubtedly make some brokers nervous about writing low doc home loans, Mr Rehayem said any extra caution was unnecessary.

Pepper Home Loans are a leading Australian provider of non conforming loans. Pepper do not just get a loan application and approve it....