Home loan customers face negative equity concerns
Article by Mozo
A growing number of Aussie house hunters looking for the best home loan rates are facing increasing negative equity concerns.
Chief executive at Resi Mortgage Lisa Montgomery told the Courier many providers had stopped issuing 95 per cent home loans during the financial crisis, but these have started to return in the past 12 months or so.
The recent decline in the value of abodes across the country has raised fears that some loans are now worth more than the property itself.
Indeed, the median house price fell by 3.5 per cent in the year leading up to September 2011 and in some parts of Australia, the value of homes dropped by as much as six per cent.
"Investors who have looked for healthy growth on the Gold Coast, for example, have been particularly disappointed and many are selling at a loss," Ms Montgomery told the news provider.
Despite this, the same publication reported last week that properties in remote mining towns are now as valuable as upmarket pads overlooking Sydney Harbour, such is the demand for accommodation in these thriving areas.
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