Behind the smiles and sold stickers, there appears to be a secret story of heartbreak behind a small but rapidly growing segment of home sales.
But the proportion of quick resales is notably higher than in previous boom markets, so it looks like there's another factor at play."Where we've seen a rise in short term resales, it's probably a combo of mortgage stress and big capital gain windfalls," she told me.Bank hardship fail That's a far more alarming number than the 0.7 per cent of home loans in 90-day arrears, which is commonly when banks start foreclosure procedures.it noted, "a small but increasing share of borrowers have requested and received temporary hardship arrangements from their lenders, which has contributed to arrears rates remaining a little lower than would have otherwise been the case".
But given that the survey included reduced income, unemployment, medical, separation, bereavement, business failure, parental leave, abuse, natural disaster and other as a fairly exhaustive list of alternative categories, it's hard not to conclude that banks simply lent too much money to a large group of people without factoring in sufficient buffers for interest rates rising.
But there was a sizeable group who were already in trouble less than three years into their mortgage. 'You have to be rich to get a loan': Big bank bosses say too much regulation is locking many Australians out of home ownershipThere's a few hundred thousand households spending more than they earn. Here's why the RBA's not worriedParliament House department shrouded in secrecy facing calls for greater transparency
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Source: FinancialReview - 🏆 2. / 90 Read more »