Extra special help for landowners

Oh, wait a second. I actually bothered to read the post, and it seems that this is for people who have a sudden change in their circumstances like UNEMPLOYMENT or ILLNESS. You know – the sort of thing that might stop you paying your mortgage even if you could previously afford it.

You can protect yourself against income loss without having to put your hand out and mooch off the rest of society. What’s most disturbing is the fact that the Labor Government seems to have come up with this waste of tax payers resources off it’s own bat … as if it had run out of ideas for how to use the money we have entrusted it with.

Income protection insurance will cover for any loss of income, whether through sickness or non-voluntary unemployment. The cost of the premium are directly related to two factors – how much income you want to insure for and how quickly you need to access the facility once you have lost the ability to earn. An average income of say $50-60K would be relatively cheap (and certainly so when compared to the alternate outcomes).

I’d also like to know what sort of person has so little self respect that they’d expect others to cover their bad debts rather than make provision for properly looking after themselves and their families.

Yes, those damn leechers living at the edge of their means, ready to be scythed down by the next interest rate hike…

Oh, wait a second. I actually bothered to read the post, and it seems that this is for people who have a sudden change in their circumstances like UNEMPLOYMENT or ILLNESS. You know – the sort of thing that might stop you paying your mortgage even if you could previously afford it.

It’ll be much better for everybody if these people lose their houses then burden the public system where they’ll suck up $10K in six months flat. That’ll show them who’s right!

dvaey said :

So, when someone with a mortgage gets this 10k, then defaults on the mortgage, does that 10k get paid back 40c in the dollar like the mortgage lender will? Or will this 10k be paid first before any lenders get their dibs? One also has to assume that there would not be any credit checks on this 10k, since if youre in financial hardship anyway, chances are good you wont be able to pass a credit check?

Will this money be like an interest-free stimulus payment, or will it be 10k deposited onto your mortgage, in order to get another head-start on it? If its a stimulus-type payment, whats to stop a potentially irresponsible mortgagee who knows theyre going bankrupt, to take that 10k and live it up for a month or two before falling into inevitable bankruptcy?

The criteria for applying for this loan is actually quite extensive. The form is available on the ACT Revenue Office website. From what I have read it is interest free and is to be paid back within 5 years. The loan will go directly on to the applicants’ home loan account.

For futher details: http://www.revenue.act.gov.au/home_buyer_assistance/mortgage_relief

Clown Killer said :

What the hell is wrong with people getting their own income protection insurance and taking a little responsibility for their lives instead of having Government nanny them.

Well for a start, Income Protection Insurance generally doesn’t cover loss of job due to redundancy or if it does, the premiums are so high you would be better off paying them directly on your mortgage.

dvaey said :

So, when someone with a mortgage gets this 10k, then defaults on the mortgage, does that 10k get paid back 40c in the dollar like the mortgage lender will? Or will this 10k be paid first before any lenders get their dibs?

The government gets a caveat over the property which means they will get the same repayment as other lenders. A condition of the loan is that the total mortgage must be less than 90% of the value of the property, so there is a good chance of them getting their money back.

dvaey said :

One also has to assume that there would not be any credit checks on this 10k, since if youre in financial hardship anyway, chances are good you wont be able to pass a credit check?

There is a review of your financial position and you must have accessed some other form of financial assistance. In some ways, the scheme operates as a lender of last resort.

dvaey said :

Will this money be like an interest-free stimulus payment, or will it be 10k deposited onto your mortgage, in order to get another head-start on it? If its a stimulus-type payment, whats to stop a potentially irresponsible mortgagee who knows theyre going bankrupt, to take that 10k and live it up for a month or two before falling into inevitable bankruptcy?

It’s deposited directly into your mortgage. I’d assume it is progressively paid as the payments fall due rather than a lump sum.

Despite all of the complaints from the ‘holier than thou’ types, I believe this is a worthwhile scheme from the government. Very few people would be in a position where they could financially support themselves for a prolonged period without income. In most cases, as it was in mine, loss of a job through redundancy happens very quickly and unexpectedly. Its easy to say ‘get another job’ but when you are one of a large number of similarly qualified people who are all looking for the same type of job that employers currently consider is unnecessary, your chances of re-entering the workforce are slim.

I don’t get this. Is the government acknowledging that there are a large bunch of idiots that only took out a mortgage because the rates were are record LOWS and they NEVER expected the rates to increase?? AND the banks lent it to them on that basis? Personally, I would love to see what qualifies as hardship in this regard.

This is a complete joke. What the hell is wrong with people getting their own income protection insurance and taking a little responsibility for their lives instead of having Government nanny them.

I’m hoping that interest rates go up quite a bit – so that investment returns start getting realistic again. VGs right, what’s the bet if rates go up 125 or 150 basis points there’ll be a conga-line of dopes with their hands out looking to mooch of the rest of us just because they couldn’t be ar$sed taking responsibility for their own financial security.

Also, slightly misleading headline. This applies to mortgage-holders, not land-holders. If youre in financial difficulty and cant pay the mortgage on your property, then the bank is the land-holder, youre simply the mortgage-holder.

State provided insurance?

It also made houses available to those who could afford them twice over, but who had been paying ridiculously high rents that reduced the amount they could save. In our case, it pretty much just covered the stamp duty; the rest we did with our own savings. In the other states, first home buyers get a much cushier time on the stamp duty front, though.

So, when someone with a mortgage gets this 10k, then defaults on the mortgage, does that 10k get paid back 40c in the dollar like the mortgage lender will? Or will this 10k be paid first before any lenders get their dibs? One also has to assume that there would not be any credit checks on this 10k, since if youre in financial hardship anyway, chances are good you wont be able to pass a credit check?

Will this money be like an interest-free stimulus payment, or will it be 10k deposited onto your mortgage, in order to get another head-start on it? If its a stimulus-type payment, whats to stop a potentially irresponsible mortgagee who knows theyre going bankrupt, to take that 10k and live it up for a month or two before falling into inevitable bankruptcy?