Spare a thought for the “mortgage prisoners” – the tens of thousands of home loan borrowers who are stuck with their bank either because the value of their house has slumped or because the sharp spike in mortgage rates means they do not meet the lending criteria of other lenders.
And that means there is little reason for bankers to offer any special treatment to these mortgage prisoners.Instead, bankers are busily calculating how many of these highly leveraged home loan borrowers are likely to get into trouble on their mortgages. Despite the steep slide in national house prices, however, Jones estimated that fewer than half of 1 per cent of home loan customers had negative equity.
But the bank is keeping close watch on 5 per cent of its home loan book, accounting for about $23.5 billion in loans. The sharp slow down in the housing market means there’s little new home loan lending. As a result, the big banks see their primary challenge as keeping hold of a large share of the customers who are rolling off their low-cost fixed-rate loans onto higher-cost variable-rate mortgages.
At the same time, banks are competing aggressively to lure high-quality customers from other banks, offering cashbacks of up to $6000 to those who switch banks.
Lol how did the agent let the white man get paddle 888?
There’s more captured customers than ever- if they’re not in negative equity they’re over the LVRs and no doubt with the 3.5% loan buffer they can’t afford their current loan anyway! With Special Thanks to Phil Lowe! Who lost $36.7bio of taxpayer money to create all this!
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