Chappas
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- Feb 2, 2005
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Scary stuff, I shudder to think what interest rate some of these ppl are going to be hit with, sounds like he has quite a few on his books who are right on the line now and he knows a major interest rate rise is coming their way, ie from 4 % to 10%, thats gotta be a killer blow for anyone, Australia's own sub prime mess about to unfold?
July 01, 2008 09:45am
HOMEOWNERS already struggling with mortgage repayments need to cut their losses and sell up before it is too late, an industry insider has warned.
Those homeowners feeling the pinch from rising interest rates and living costs need to put their house on the market now because things are about to get much worse, Wizard Home Loans founder Mark Bouris said.
He said inflation pressure and rates rises had made the repayments calculations people made when entering into a home loan only a few years ago were now not worth the paper they were written on - and urged homeowners to "get their heads out of the sand" and realise the trouble around the corner.
And anyone hoping today's tax cuts would ease their pain has more bad news coming, with reports that inflation has already eaten up more from family budgets than the Government is giving back.
The Reserve Bank board holds its monthly meeting on interest rates today, but most economists predict rates will remain steady.
'Worse to come'
But despite that slight reprieve, Mr Bouris said there was a "major problem looming" for struggling homeowners over the next few years. "I know this because of what I hear in the industry and what my customers are telling me every day.
"Interest rates have gone so high in the last few years that ... homeowners really are battling. And there's worse to come. Much worse."
Mr Bouris said people who singed up for a fixed loan three or four years ago - before rates shot up - are about to get a shock. These homeowners will soon be switched from their introductory fixed rate to a much higher loan.
"They have no idea what is about to hit them," he said.
He also said that interest rates have risen so much in recent years that the calculations once applied to assess someone's capability to pay back a loan "are now nonsense".
"Mums and dads need to take their heads out of the sand and start looking at the next six months, because these high interest rates could last for another year or so. There's only so long some people can hang on."
July 01, 2008 09:45am
HOMEOWNERS already struggling with mortgage repayments need to cut their losses and sell up before it is too late, an industry insider has warned.
Those homeowners feeling the pinch from rising interest rates and living costs need to put their house on the market now because things are about to get much worse, Wizard Home Loans founder Mark Bouris said.
He said inflation pressure and rates rises had made the repayments calculations people made when entering into a home loan only a few years ago were now not worth the paper they were written on - and urged homeowners to "get their heads out of the sand" and realise the trouble around the corner.
And anyone hoping today's tax cuts would ease their pain has more bad news coming, with reports that inflation has already eaten up more from family budgets than the Government is giving back.
The Reserve Bank board holds its monthly meeting on interest rates today, but most economists predict rates will remain steady.
'Worse to come'
But despite that slight reprieve, Mr Bouris said there was a "major problem looming" for struggling homeowners over the next few years. "I know this because of what I hear in the industry and what my customers are telling me every day.
"Interest rates have gone so high in the last few years that ... homeowners really are battling. And there's worse to come. Much worse."
Mr Bouris said people who singed up for a fixed loan three or four years ago - before rates shot up - are about to get a shock. These homeowners will soon be switched from their introductory fixed rate to a much higher loan.
"They have no idea what is about to hit them," he said.
He also said that interest rates have risen so much in recent years that the calculations once applied to assess someone's capability to pay back a loan "are now nonsense".
"Mums and dads need to take their heads out of the sand and start looking at the next six months, because these high interest rates could last for another year or so. There's only so long some people can hang on."
