Commonwealth to support Storm investors with cut-price home loans
Commonwealth Bank is set to offer cash payouts and home loan cuts to clients of Storm, the recently collapsed Queensland investment broker.
As part of the deal, Commonwealth will wipe the over-inflated home loans that were given to more than 2,000 Storm investors.
The investors, many of them retirees, claim that they were duped into re-mortgaging their homes and investing their life savings into high-risk portfolios by the failed broker.
Investors who face losing their homes will also get a hardship provision to allow them to keep their properties under a fee freeze.
Acting on behalf of Commonwealth, Slater & Gordon lawyer Damien Scattini said: "No one will lose their home. If they can’t service the home after the loan revaluation, and the margin loan compensation, if they are still under water, hardship provisions will kick in and the bank will do whatever it takes to help."
This week, a survey conducted by the Housing Industry Association and the Commonwealth Bank revealed that housing affordability fell dramatically at the end of 2009, heightening the need for Aussies to compare home loans in search of the best deals.
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