Queensland homes repossessed as loan defaults soar

Friday 05 November 2010

Article by Mozo

Queensland saw a record number of home and business repossessions in August this year because of rising mortgage defaults.

New Justice Department figures show lenders filed 193 claims to repossess homes and businesses in the state's courts during the month – the highest monthly total since records began around1992, the Courier-Mail reported.

Speaking to the newspaper, Lifeline financial counselling practice leader Ken Campbell claimed the figures were just "the tip of the iceberg" given that many cases never made it to court.

He suggested that many homeowners were also forced to put their property up for sale after failing to meet home loan repayments.

Mr Campbell commented that counsellors are also "bracing for another onslaught in demand" after the Reserve Bank's decision to hike the official cash rate to 4.75 per cent this week.

Borrowers struggling with mortgage repayments can choose to compare home loans and consider refinancing. Earlier this week, Canstar Cannex financial analyst Mitchell Watson told the Australian that property owners should "do the sums" on their home loan options and change banks if the repayment savings exceed the cost of exit and application fees.

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