The Australian Federal Government will pump a further $3.5 million dollars of federal funding into 41 local government and community organisations to make financial counselling available free of charge for individuals and families who have got them selves into a mess with their home loan mortgages.
Aside from last months ΒΌ% rate drop, Australian Home Loan borrowers have endured 10 consecutive mortgage rate increases. Charitable institution Wesley Mission report that mental health has become a big issue for mortgage borrowers with many stressed borrowers now suffering clinical depression.
Many feel trapped, and isolated by their debt as their lenders seem ambivalent to their plight. The Banks and other lenders are very chummy when issuing the home loans, but turn quickly to savage dogs when you miss a payment or go over your limit.
It can help sort things out quickly when you get a different perspective on your financial situation. If currently, you cannot afford an accountant or financial planner use the service. If your debts have got out of hand, they maybe able to structure a plan for you and advise a debt consolidation strategy to help you get back on track.
On another note, never trust your lender. This current economic turmoil was caused by greedy bank executives trying to impress others and fatten their bank balances. The truth is lenders really do not care for their customers. We are just numbers to them. Your mortgage broker is where your loyalty should be invested. He or she has a vested interest in your welfare at the grass roots level, they generally do care about you. Use your mortgage broker more, make them your trusted advisor.
Did you know 54% of monthly bank statements contain errors! Never accept the repayments specified by your mortgage lender as being correct. In November 2005 the National Australia Bank admitted it had been overcharging 50,000 customers for about 13 years and that it was going to hand back $21.6 million dollars. In this instance the overcharging mistake largely affected business customers with fixed interest rate loans.
To check up on my lenders, I have been using the PC based Mortgage Watchdog mortgage checker software for four years now. The banks do not want you to use this software because of the refunds they have had to make to users. If you have an existing mortgage then it will pay you to buy this particular mortgage calculator instead of using the free bank calculators. Not only can you do “what if” scenario’s but you can check whether the bank has been ripping you off with your existing mortgage and get a refund.