Much ado about nothing - negative equity no concern

Font size :
In response to this fear campaign, industry bodies such as the Mortgage Industry Association of Australia (MIAA) have hit back with the message that consumers should not panic about negative equity or that it will result in their home being repossessed. Phil Naylor, CEO of the MIAA, said that further analysis is required to properly make sense of recently released repossession statistics. "These reports focus on absolute numbers and is not reflective of the proportion of people with mortgages," he said. Naylor added that Australia actually has an extremely low rate of repossession. "The proportion of non-performing loans in Australia [versus the whole mortgage market] was just 0.3% in 2005 - that's the lowest in the world." Furthermore, Naylor said that 'repossession' was often confused with an 'action for repossession,' and that the two were often combined together. In reality, when most people receive an action for repossession, it's more common that they would seek help to rectify their situation, even sell their home themselves, than having their property subjected to a mortgagee sale. Basically, any increase in the repossession statistics may espouse an increase in actions for repossession but may in turn reflect a tendency for Australians to over extend themselves in debt. "You can't deny that the absolute numbers have increased, but you'd be drawing a long bow to say that they have solely increased because of interest rates," said Naylor.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords