Here is a ink to some great RBA data. Should offer some interest for those interested in Offset accounts and how that affects stability, plus many other issues.
Here is a ink to some great RBA data. Should offer some interest for those interested in Offset accounts and how that affects stability, plus many other issues.
Hmmm - Yeah, the Aussie homeowner is going to be a rather tougher 'nut to crack' than they were 'once upon a time' I suspects?
Just one specific 'for instance' that even a pretty much self confessed financial 'simpleton' like me knows of:
"Compassionate grounds: Mortgage assistance You can apply for early release of your super benefits on compassionate grounds, if your home is going to be forcibly sold by the bank or financial organisation that lent you the money for your home mortgage, or the bank is going to foreclose on your mortgage, and you need your super benefits to prevent this from happening.
In addition to completing a special form, you must give DHS a written statement from your bank or financial organisation that states the following
* payment of an amount is overdue and if the person fails to pay this amount, the mortgagee (lender) will foreclose the mortgage on the person’s principal place of residence; or exercise its express, or statutory, power of sale over the person’s principal place of residence. * the amount that equates to 3 months of repayments under the mortgage; and * the amount that is 12 months of interest on the outstanding balance of the loan at the time the statement is made.
Maximum amount that can be released for mortgage assistance each year: According to Schedule 1 of the SIS regulations, the amount accessed from the person’s super benefit for mortgage assistance must be a single lump sum, being an amount determined in writing by the Regulator (DHS), not exceeding, in each 12-month period, an amount equal to: the sum of 3 months’ repayment, AND 12 months’ interest on the outstanding balance of the loan.
Note: The ground of ‘mortgage assistance’ does not include circumstances where an applicant expects to have difficulty in making mortgage payments in the future, or for mortgage payments in arrears where the lender has not yet decided to sell, or for other people’s mortgage payment arrears (such as family members), or for a second property or investment property."
Hmmm - Yeah, the Aussie homeowner is going to be a rather tougher 'nut to crack' than they were 'once upon a time' I suspects?
Just one specific 'for instance' that even a pretty much self confessed financial 'simpleton' like me knows of:
"Compassionate grounds: Mortgage assistance You can apply for early release of your super benefits on compassionate grounds, if your home is going to be forcibly sold by the bank or financial organisation that lent you the money for your home mortgage, or the bank is going to foreclose on your mortgage, and you need your super benefits to prevent this from happening.
In addition to completing a special form, you must give DHS a written statement from your bank or financial organisation that states the following
* payment of an amount is overdue and if the person fails to pay this amount, the mortgagee (lender) will foreclose the mortgage on the person’s principal place of residence; or exercise its express, or statutory, power of sale over the person’s principal place of residence. * the amount that equates to 3 months of repayments under the mortgage; and * the amount that is 12 months of interest on the outstanding balance of the loan at the time the statement is made.
Maximum amount that can be released for mortgage assistance each year: According to Schedule 1 of the SIS regulations, the amount accessed from the person’s super benefit for mortgage assistance must be a single lump sum, being an amount determined in writing by the Regulator (DHS), not exceeding, in each 12-month period, an amount equal to: the sum of 3 months’ repayment, AND 12 months’ interest on the outstanding balance of the loan.
Note: The ground of ‘mortgage assistance’ does not include circumstances where an applicant expects to have difficulty in making mortgage payments in the future, or for mortgage payments in arrears where the lender has not yet decided to sell, or for other people’s mortgage payment arrears (such as family members), or for a second property or investment property."
Borrowers with interest-only loans tended to have sizeable offset accounts, reducing risk.
...
The youngs in my mob are totally P&I with their 'investor' type property debt. With me having covered their backs for a very damn sizeable proportion (by putting it into their offset accounts) - As I've commented before. (With me independently still having plenty left over should I need it meself for any reason. Or should the proverbial hit that other proverbial for them for any reason.)
And Yeah sure they DO pay me interest! (On 'my' funds in 'their' offset accounts) - But at a quite considerably reduced rate on what they'd pay the banks; Sheesh, they've even dropped hints about how they'd prefer to be paying me a bit more actually ... Nice young people that they are ...
And I defy any regulator cum RBA dude (or pretty much anyone else period really) to be able to figure out just how much of those and any other sort of similar/related (?) additional familial safeguards might exist in 'the system'.
The youngs in my mob are totally P&I with their 'investor' type property debt. With me having covered their backs for a very damn sizeable proportion (by putting it into their offset accounts) - As I've commented before. (With me independently still having plenty left over should I need it meself for any reason. Or should the proverbial hit that other proverbial for them for any reason.)
And Yeah sure they DO pay me interest! (On 'my' funds in 'their' offset accounts) - But at a quite considerably reduced rate on what they'd pay the banks; Sheesh, they've even dropped hints about how they'd prefer to be paying me a bit more actually ... Nice young people that they are ...
And I defy any regulator cum RBA dude (or pretty much anyone else period really) to be able to figure out just how much of those and any other sort of similar/related (?) additional familial safeguards might exist in 'the system'.
It's always better to pay it to family than the bank.
Take risks - if you win you will become wealthy, if you lose you will become wise
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