Published: January 27, 2009 - 10:02 PM
Home loan defaults lead to eviction rise
Acting PM Julia Gillard has said that Australia's banks should do what they can to limit the mortgage stress being felt by families the Sydney Morning Herald has reported.
Ms Gillard will be meeting with the welfare and not-for-profit sector to hear what those at the coal-face of the economic crisis are experiencing and what they expect to see in the mortgage and home loan sector compared to 2008.
With job losses being announced globally concerns in the welfare sector will rise should families be unable to meet their mortgage and home loan repayments and face repossession and eviction. How the major banks, the Commomwealth Bank, Westpac Bank, ANZ and NAB, decide to enforce their repossession policies as compared to the strict terms and conditions of their loans may impact on how badly those losing jobs are affected long term.
Alison Walter of ShopAround said that if the banks choose to strictly enforce their home loan terms and conditions without any consideration of the economic conditions mortgage repossessions should rise in comparison to last year.
"Families facing high home loan repayments and job losses will need all the help available to keep the family home. But there are plenty of ways they can save money on essential living costs. Firstly with the low interest rates, homeowners should be taking the opportunity to shop around for the lowest interest rate possible and ensure they are getting the cheapest home loan. Secondly, they can save money on other essentials such as gas and electricity by comparing electricity suppliers and making a comparison of gas providers to ensure they are getting the cheapest electricity and gas on the market."
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