Rather than have all these useless stimulus packages we need people to have home security.We need short term legislation so that those faltering on their repayments can elect to postpone their repayment commitments whilst paying an afflordable amount to the banks.Why not have an interest only agreement for the term of this crisis?If people feel secure in their houses then spending will naturally flow.

Many of you may not be aware that often mortage agreements have clause that allows banks to call in a loan at a moments notice even if you are servicing the loan.This means that many people could be forced to sell in a depressed market and still owe the bank money.Kevin must address this situation immediately.

Let them move to a smaller cheaper house without the cost of stamp duty and solicitors fees.
A computer could do the paperwork in a few seconds using information from previous sales of the houses.

First house buyers grant is mostly canceled by stamp duty.
One department to give away money and another to take it back.
Sack them all.
A house is as complicated as a car and should cost the same.

Are you sure a first home buyer pay stamp duty?
Keeping people in homes they can not afford to pay for started this crisis are you aware of that Arjay?
Some of those homes are Mac Mansions, some of the tax payers you ask to pay your subsidies for those homes live in far lessor homes.
20.000 more low income homes is a start to fix a real problem.
But its not time to repeat Americas crime against the world economy.
Out system of default in homes and borrowed money is far more responsible.
We you I every one are going to suffer, much more than most think, but leave financial policy to those who understand it.

Simply barricade the outside of their doors and windows so they can’t get out :-)

I agree with Belly. Anyone in a big house should have had enough smarts not to get caught.

I watched TV last night and people were whinging about the fact *they* fixed their mortgage rates and the rate has gone down...would they have agreed to pay more if it had gone up? As for blaming the treasurer… why did he know this crisis was coming back then...give us a break.
I think it’s amazing how quick people are to blame others for their greed when it goes south.
A neighbour of mine bitched about the govt. guaranteeing bank deposits but not his unregulated property trust. He knew the risk he was taking for higher returns. I have no time for this reasoning.

Notwithstanding I have real sympathy for those who in good faith were stitched up and the low income people who have neither a home or a reasonably priced rental.
Belly, come the revolution we’ll fix it hey comrade. :-)

Arjay “We need short term legislation so that those faltering on their repayments can elect to postpone their repayment commitments whilst paying an affordable amount to the banks.”

My experience of the attitudes of lenders and mortgage insurers is

They do bend over backward to avoid borrowers being evicted and the property auctioned.

They do try to accommodate borrowers on variable rate mortgages to conversion to interest only loans. They do allow them to “redraw” if they have run ahead of their minimum repayment in the past, they will exercise discretion to allow borrowers to work their way out of a predicament -

Because a mortgagee auction is just “Bad News” and the worst publicity for the lender.

However, where someone has simply walked away from their obligations and left the property they had used as security for borrowings, what should the lender do?

(and that is the problem with the “Jingle Mail” laws in USA which brought the house down and initiated this financial crisis, figuratively speaking).

“banks to call in a loan at a moments notice even if you are servicing the loan.”

Yes but that clause is not implemented by reputable lenders and is there to allow the lender redress in the case of a loan advanced against what is later found to be a fraudulent application (mortgages are contracts of complete disclosure, the same as insurance policies).

Belly “Are you sure a first home buyer pay stamp duty?”

it depends on the state. Each state set their own stamp duty laws and historically Queensland has been a lot lower % of purchase price than Victoria which has, in the past, required FTHB’s to pay the tax.

One of the biggest constraints to affordable housing within and around Melbourne has been release of land blocks and approval of projects by state and local government. The supply of blocks has been strangled by Government “Melbourne Green Wedges” planning strategy.

And Belly and Examinator are correct, the borrower is “responsible” for his own “folly" (so to speak).