Families tend their wounds after high rate mauling

Tuesday 23 December 2008

Article by Mozo

While the market is awash with new low-interest home loans, the Reserve Bank’s attack on the base rate seen since September has come too late for many Aussies, new figures show.

The Daily Telegraph reports that official stats show that some 1,300 families lost their homes in the first nine months of this year, falling victim to what have experts have recognised as unfairly high interest rates.

Katherine Lane from the Consumer Credit Legal Centre described the situation as a “travesty”.

“I have seen too many people lose their property who would have been fine if they could have held on for just a little longer,” she lamented.

Since the days of the 7.25 per cent interest rate seen in September, a 13-year high, consumers may have seen hundreds of dollars shaved off their monthly home loan repayments as variable rate deals came down.

And for those who were able to hold on during the high times, the Courier Mail has reported that they may get more respite in the new year as rates are predicted to fall again, which could pave the way for a slew of new low interest home loans.ADNFCR-1761-ID-18945106-ADNFCR

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