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Negative equity risk for nearly 7% of Australian mortgage holders

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Australian Broker | 07 Oct 2016, 07:00 AM Agree 1
A new report has shed light on this group of property owners and found which states are the hot spots for equity risk
  • Cubeman | 07 Oct 2016, 10:24 AM Agree 0
    "While this could reflect on the duty of care that brokers had to customers, Morris said that these trends would present more of a problem if prices go down."

    Yes, we have a duty of care, but don't forget that we are 50% of market share!!!

    Further, given that the relevant lender completes a valuation and applies LMI to the deal for 80% + LVR - I would suggest that the duty of care is with the buyer rather than the bank / broker who are facilitating the transaction on behalf of the client.
  • Papery | 07 Oct 2016, 11:26 AM Agree 0
    Unless Brokers are suitable qualified, Brokers need to stick to the finance piece....most Brokers are not in position to advise on property. Period.

    Anyway, property prices only ever go up, don't they....????? Buyer be ware.
  • Emanuel | 10 Oct 2016, 11:46 AM Agree 0
    Since the end of the “mining boom” property values dropped.
    Negative equity for West Australian mortgage holder is a reality, a sad but a reality!
    Any refinance enquiry arriving at our office, a valuation is the first step and then we looking into the serviceability
    Mortgage holders with a lending of 80% can be happy if they still have a couple of dollars in asset in their property.
    Properties in the outer Perth, had a value in 2013 of (we say) 420K todays valuation will be in the vicinity of 385K this are facts.
    Cubeman and Papery, Duty of care applies to new deals but the 7% of mortgage holder in trouble refers to refinance, and NO property prices do not ever go up.
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