‘Liar loans’ on the rise as risky mortgages drive house price boom
The bank's annual survey of around 900 people who took out a mortgage over the past year showed that 41 per cent submitted loan applications that were not completely factually accurate — so-called "liar loans".
Experts warn against resorting to buy now, pay later loans for essentials during lockdown
Consumer advocates say some lenders are cashing in on those facing financial distress while under lockdown conditions.
Key points:The Consumer Action Law Centre believes lenders are taking advantage of people still waiting on government support
Financial counsellor Peter Thompson says he has spoken to people turning to buy now, pay later lenders to pay for essentials
Afterpay says it has never enforced a debt nor sold debt to a collection agency
Financial counsellor Peter Thompson has been field…
Mortgage costs to jump as interest rate rises loom, warns CBA
Australians could soon be paying more than $26 billion a year in extra mortgage repayments as interest rates begin to "normalise", but the Commonwealth Bank argues there are several reasons why most households will be able to cope just fine.
Key points: The RBA's interest rate decision will be announced at 2:30pm AEST, followed by a rare press conference from the governor No-one is expecting a rate rise, but there are likely to be announcements about the future of other measures that have kept mortgage rates very low CBA says households should be able to cope with a forecast rise in the cash rate from 0.1 to 1.25 per cent over the next two-and-a-bit yearsGetting a home loan when self-employed or work on a casual and contract basis
For Melanie, owning her own home — and getting a loan in her own name — was a hard four-year journey.
The 38-year-old creative writing lecturer jokes that it took her "47 jobs" and working up to 100 hours per week without taking holidays to finally secure her three-bedroom Brisbane Queenslander in 2019. "I'm exaggerating, but if I went through my payslips and [short-term teaching] contracts with the different universities, I probably did technically have about 47 jobs," she says. "Every contract that you do counts as another job with the bank." As someone working primarily…Home loans buoyant, but investors subdued
What homebuyers should look for when comparing home loans
It’s a great time to buy property with record-low interest rates, but homebuyers are cautioned to avoid these mistakes when shopping for loans.
Kathy SkantzosWith unprecedented cuts to Aussie home loans and ultra-low interest rates, now could be the ideal time to buy, but buyers have been warned to shop around before committing to a mortgage.
Canstar’s group executive of financial services Steve Mickenbecker told news.com.au that homebuyers should not be getting a loan for anything around the 3 per cent mark or above. He said home loan rates are down at around 2 per cent – an ultimate low we haven’t seen before – and buyers shouldn’t be going any higher. “We’ve not seen a minimum anywhere around that. In 2015, the average interest rate was around 5 per cent and in 2020 the national average was 3.32 per cent. That’s…Simpler lending rules for home loans
Many Aussies are making a big mistake with home loans
How mortgage hunters could be dudding themselves out of the best deal, all because of an unfounded fear.
Rebecca Le MayMany mortgage hunters have an unfounded fear of non-bank lenders and could be dudding themselves out of the best deal.
After the Reserve Bank of Australia slashed the cash rate to record lows earlier this month, it was the smaller, little-known outfits Athena, Reduce Home Loans, Homestar Finance, Homeloans.com.au and Pacific Mortgage Group that led the charge in passing on interest rate cuts to customers. RateCity research director Sally Tindall said non-bank lenders had helped drive prices down across the entire home loan market, particularly in recent months as record numbers of mortgage holders moved to refinance, especially when it came to fixed rates. “Right now, the lowest fixed rate loan on the market is just 1.…