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Mortgage Insurance claims up 329%

Discussion in 'Real Estate' started by Simon Hampel, 8th Aug, 2007.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    This article from ABC's Lateline is actually discussing the question of a rate rise "tomorrow" (today - moot now given that they have confirmed a rate rise of 0.25%) ... but the interesting part was the brief discussion about the rapid increase on Mortgage Insurance claims - up 329% ... but they do admit this is from a very low base.

    Just thought some might find it interesting - there are a LOT of implications from a rate rise ... and tightening mortgage insurance generally means more difficult finance. I know from my own experience that it is the mortgage insurers who actually make the final decision on whether to approve my IP loans (rather than the banks who are usually quite happy).

    Lateline - 07/08/2007: Nerves grow ahead of RBA rates announcement

    Lateline - 08-Aug-2007

     
    Last edited: 17th Sep, 2016
  2. Sk3tChY

    Sk3tChY Well-Known Member

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    Aww mang...

    They really need to increase the first home buyers grant to $14k, rather than 7k. Correct my if im wrong but isn't it $14k in every other state apart from NSW..?

    Its a little ironic, that the most expensive state in Australia has the lowest grant... :p
     
  3. DaveA

    DaveA Well-Known Member

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    in this circumstance sim, say you have paid an application fee, is this then lost to the bank???
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Dunno - I don't pay application fees upfront ... my mortgage broker takes care of ensuring that I get the loans I apply for.
     
  5. Leandro

    Leandro Well-Known Member

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    The first home owners grant is issued by the Federal goverment, so it is the same for everyone around Australia. Some states i believe give some extra benefits, but then in NSW we also have the stamp duty exemption up to 500K i believe.
     
  6. Sk3tChY

    Sk3tChY Well-Known Member

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    I was told it was $14k in other states, im pretty sure they said it on the news a couple of nights ago as well.
     
  7. DaveA

    DaveA Well-Known Member

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    yeah i really have to get in touch with rolf...

    i thought most application fees are defered however i thought there maybe rules on this one, glad to know though...
     
  8. Leandro

    Leandro Well-Known Member

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    By looking at this page it looks like it is 7k around Australia

    First Home Owners Scheme

    I also had a quick look at the Office of State Revenue websites for VIC, QLD and WA and they all mention 7k too.
     
  9. Sk3tChY

    Sk3tChY Well-Known Member

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    *shrugs* If they say its 7k, its prob 7k... Someone told me before it was 14k, they were prob wrong, or maybe after benefits they meant 14k... iono
     
  10. Simon

    Simon Well-Known Member

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    There was a story about someone calling for it to be doubled. Just a beat up story.
     
  11. Sk3tChY

    Sk3tChY Well-Known Member

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    It should be doubled..!! :p
     
  12. Jacque

    Jacque Team InvestEd

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    The Federal Government initially offered a $14,000 grant for buyers of new homes, but cut it to $10,000 after December 2001 and $7000 from July 2002. That left it at the same level as the grant offered to buyers of existing homes, to what it is now. Perhaps that's what your source was referring to.

    Obviously concessions in stamp duties also vary state to state, as they are controlled by the state govts and some are more generous than others.

    I don't believe that increasing the grant will necessarily be a good thing- after all, when the grant was first introduced, it caused a frenzy of buying and artificially drove prices up to the point where many FHB's were locked out of the market.

    The investor market (here in Sydney, at least) certainly doesn't need this type of stimulation to attract investment again. Handouts of this type rarely work, and I think the federal govt would be better off considering other incentives such as tax breaks for FHB's.
     
  13. Sk3tChY

    Sk3tChY Well-Known Member

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    I see, or perhaps special interest rates or something for a certain amount of years.