Mortgage holders strategising to avoid loan default: Finder
A new survey from Finder has found mortgage holders in “survival mode” are employing “last ditch efforts” to avoid defaulting, including switching to ‘interest only’ loans.
Of the 1,062 respondents, 21 per cent of the 346 that have a mortgage said they had switched to interest only in the last two years, with 15 per cent now back on principal and interest.
Richard Whitten, home loans expert at Finder, said the data indicated mortgage holders were searching for strategies to continue meeting their repayments schedule.
“Such a large portion of people’s earnings are allocated to their mortgage and spare cash has been extinguished,” he said.
“A growing number of Aussies are struggling to make their mortgage payments due to cost of living pressures and can’t continue on the path they’re on.”
Recent analysis conducted by Finder of data released by the Australian Prudential Regulation Authority (APRA) showed $14.6 billion of home loans were between one and three months overdue in March this year, up 65 per cent from the $8.8 billion recorded in December 2022.
“The start of a new financial year is a great time to do a mortgage audit and compare whether there are better deals around,” Whitten said.
“Eliminate wasteful spending and destructive debt and make sure your habits and decisions align with your future wealth creation goals.”
Its in existing law.SOCIAL SECURITY ACT 1991 - SECT 1223Ahttps://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ssa1991186/s1223a.html
Can someone point out where, in the Exposure Draft, the Centrelink assessment would be from the start of the pension…
Offer the exit door on these old products, then set a 5 year Centrelink clawback Hammer to the head. Awesome…
Wholesale should be opt in for all clients, and be extended to super advice and risk.
Misses the point. Plus I don't get it. Then SMSF Trustees should also need to sit an exam, AND people…