Thread: Mortgage Repayments

John

Under the Howard Government I have experienced 5 interest rate rises and another 2 since Rudd came to office, I have only a few years to save for my retirement so have 2 mortgages - when I was young there was an expectation of an aged pension and health QANGO's didn't offer public service superannuation so I only started saving into private superannuation in my 30's. My second mortgage is to supplement my superannuation.

Now we have to pay some of the highest interest rates in the world, because of the spivs investing in and the sub-prime mortgage crises in the US. While the spivs still pay themselves millions each year in "performance bonuses" while I won't even have a million dollars for self-funding my own retirement.

Yes the government should look into ways of reducing mortgage rates for the middle and lower classes, at least to world parity interest rates, just like they do with fuel excise.

I bet the 8960 people who said no are mortgage brokers!

Diana

Originally Posted by BigJon

When I log out of my hotmail account, the nine msn homepage comes up.
Each day they have a diiferent question with a multichoice answer.

Todays question is :Should the government take steps to lower mortgage repayments?

The last time I looked, 44 105 people had said yes, 8960 people had said no.

What is wrong with all of those "yes" people? Whatever happened to taking care of yourself and not relying on government assistance or handouts?

Surely if your mortgage payments are too high, that is your fault, not the governments. Sell that house and buy a cheaper one!!

On one hand, people like to complain about the level of government intervention in our lives, then on the other the majority are voting for more intervention / regulation/nannying.

It makes my mind boggle...

what about the people that could afford thre morgage repayments until all the interest rises

and the fact that cost of living is going up all the time but wages aren't going up with them.........

very idealistic view i think bigjon...... how stressed would you feel if you suddenly couldn't afford your house due to factors out of your control and you suddenly had to sell and you had lets say three kids in tow and the only house you could afford was 2 hours away from the school they love going to
but hey i suppose that would be your fault

I would have thought most people vote goverments in to keep taxes down, put in place stategies to keep inflation down etc.etc. these are measures that governments can do and should do to make house repayments easier. This is not asking for hand outs its asking the government to do its job. Its up to us to vote the right one in at election time.

i agree, but its not always the fact that people over borrowed to buy the house, in the last couple of years the cost of living has risen and its, fuel prices, grocery prices it all adds up, so people who were doing fine before might not be now, not to mention the rising interest rates. most will say they should have allowed for this sort of thing when they bought the house, but maybe people thought they had and things have risen more than they planned.

I do agree that people should service their debts, if they borrowed that much they need to take responsibility, but i know people in places like bathurst are stuggling because 2yrs ago house prices were through the roof, since interest rate rises the housing market in bathurst has died in the backside, the market has been flooded with houses that arent selling (things might have improved by now, but it was really bad at one stage) so house prices fell dramatically meaning people couldnt sell because when the bought the house it was worth alot more so the loan is worth more than the house. Then there is the issue of people buying houses with bugger all of a deposit, i dont think this is the borrowers fault it is the fault of the bank for allowing people to over extend themselves. I recently changed my credit card to a different one with a lower interest rate, when i did it i apply for the same rate, $2500, something that i could use in emergencies but not be so high it would be impossile to pay off, when i got the application back in a split second with a yes answer for a limit of $11500, over 4 times my original limit. people can get credit and loans to easily these days, i think that is what needs to be dealt with, not the fact that people are over extended on their mortgages.

Hi All,
I was a mortgage holder when the home loan interest rates rose to 17%. At the same time I was paying extra into super.

Now, through my foresight, my mortgage is paid off & I have a "reasonable" super.

Why should the gov't intercede on behalf of those with less foresight?

Best Wishes,

Originally Posted by Bushwanderer

Hi All,
I was a mortgage holder when the home loan interest rates rose to 17%. At the same time I was paying extra into super.

Now, through my foresight, my mortgage is paid off & I have a "reasonable" super.

Why should the gov't intercede on behalf of those with less foresight?

Best Wishes,

may i ask if you were in a well paid job?????
becuase i work with a number of people that could just not posibly even a morgage repayment let alone a house with the way things are rising

is it that you should only be able to have a house if you are forutnate to have a comfortable job.....???
these people work very very hard at there job for little money and some people in life dont work hard at all and dont have many worries in thre lives let alone a morgage payment

what about giving less fortunate people a fair go!!

beacuse the way i see it they would end up getting the money from the government with breaks another way

i dont beleive the governement should pay peoples morgages but i do believe they need to keep an eye on things a bit like the fuel price increases,

Much of the problem arises from irresponsible lending and people being happy to accept a loan of up to 105% of valuation. They have no equity in the property and will not for quite a few years until appreciation of property values (inflation) takes place. Not all that long ago, to get a housing loan you had to show a history of saving and a deposit of from 25% to 40% of valuation. Also people now buy houses with all the bells and whistles, 4 bedrooms, 3 bathrooms, triple garages, pools and spas, air conditioning etc. meaning enormous mortgages. Their parents were happy to just have a house, usually two bedrooms, sleepout maybe, lean-to laundry, no garage or driveway (mostly no car anyway). Extensions and luxuries were added as they could afford them.

When I bought my current house in 1975, the bank would not take into account anything other than my base salary. Commission, company car, free home 'phone, were not in the equation, nor were my wife's full time earnings. She might get pregnant and have to stop work. We were required to have a deposit over 30% of valuation. We could however service the loan and with my commission earnings paid it off in 6 years.

may i ask if you were in a well paid job?????
becuase i work with a number of people that could just not posibly even a morgage repayment let alone a house with the way things are rising

is it that you should only be able to have a house if you are forutnate to have a comfortable job.....???
these people work very very hard at there job for little money and some people in life dont work hard at all and dont have many worries in thre lives let alone a morgage payment

what about giving less fortunate people a fair go!!

beacuse the way i see it they would end up getting the money from the government with breaks another way

i dont beleive the governement should pay peoples morgages but i do believe they need to keep an eye on things a bit like the fuel price increases,

The way "less unfortunate" people get a go is by getting of their backsides and doing something. Its not up to me, my neighbour or the government to do that. Now I am talking about a person with all faculties in place, if you are working very hard for not a lot of $$$, whose fault is that??? Its your fault, no one elses. Just like the person with a good job, comfortable, isn't struggling, that is also "their fault". Some examples, my ex with 2 very young children spent the last 8 yrs putting herself through Uni whilst on a single mums pension and working when she could, she is now has a double degree in Law/Arts. My current fiancee, similiar situation when I met her, working full time and doing a Commerce degree part time with a young son. My mum, 65 yrs of age, still working and doing a 12 week computer course to update skills. My old man, was 52, bankrupt, $50 in the bank, 2nd wife took off, now 68, a multi millionaire.My fiancee's old man, went back to TAFE, late 40's so he could get into IT. Other examples, was watching The Chopping Block on 9 the other day, which pits 2 restaurants against each other. Bloke ran an Eygptian Restaurant for 20 odd years, he has had Polio from 2 yrs of age. I could recount story after story after story.

So no, not a big fan of give the less fortunate a go as they have Australia on their doorstep with a multitude of opportunities for the average Aussie. Nor do I buy into the whole " cant afford to purchase property" either, where there is a will...there is a way....its the way it always has been. I was lending back in the day of 17% mortgages, they still flew in through the door and as Brian pointed out, you had to have 20% deposit. I am growing my own business, so sensibility says "Stevo, lock in your rate for the next 2 yrs so you know what you need to pay", my lo doc rate is less than the current variable rate.

Ultimately for the average Aussie there is no excuse, if I fall flat on my face, that is 100% me. If I had to fire sale my house, I wouldnt like it, but know I have enough equity in it, to still come out fine. When I donate $$$ it is to those that really are unfortunate, we sponsor children who have nothing like what my children have. People forget we really are the lucky country and if you are struggling....what are YOU going to do about it,

Regards

Stevo