‘Devastation’: Family’s mortgage shock

With fears interest rates are going to remain higher for longer, one family faced being trapped in mortgage prison for a bizarre reason.

As the interest rate soared, Mr Davies said it was disheartening as it felt like the couple’s monthly mortgage repayments were making no dent on their loan. “I was a little bit devastated. I thought maybe our property isn’t worth as much and I didn’t understand and thought it was just the way it was,” he said.

Yet, a third valuation from Commonwealth Bank came in at $525,000 and the couple were “surprisingly” able to refinance with a big four bank at an interest rate of 6.38 per cent and with no need to pay LMI.Mr Davies’ experience saw a staggering $74,000 difference in property valuations between three banks and he thinks greater transparency is needed, particularly as the issue can cost people thousands more in repayments.

Source: Loan Digest (loandigest.net)

New South Wales Interest Rate Serviceability Buffermacrobusiness Desktop Valuation Australian Homeowners Cost Blowouts Commonwealth Bank Of Australia Newcastle Credit Rating Mortgage Prison Davis Oceania Borrowing Opportunities Borrowing Costs Lower Valuation Mortgage Insurance Disastrous Policy Sarah Sharples Mortgage Shock Property Market Initial Lender Repayment Periods Compare Club Australia And New Zealand Interest Rates Kate Browne Property Valuations Ross Greenwood Panic Selling Sky News Home Equity Interest Rates Leading Impact Valutations St George Bank Ltd. Lower Valuations Value Ratio Brilliant Credit Mortgage Repayments Destabilise Financial Stability Monthly Mortgage Repayments Australia Exhorbinant Interest Rate

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

King tides cause new levels of devastation in Tuvalu, as nation weighs up Falepili Union treatyKing tides are not new in Tuvalu, but February's reached areas that had not been flooded before, forcing some Tuvaluans to question how much time they had left in their home country.
Source: abcnews - 🏆 5. / 83 Read more »

'United in devastation': Over $500,000 donated for Bondi stabbing victims' familiesSupport for 9-month-old Harriet Good, whose mother was killed by an attacker in Bondi Junction, has been 'overwhelming,' her family said.
Source: SBSNews - 🏆 3. / 89 Read more »

Family shares devastation as former NBA guard Darius Morris dies at age 337NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Source: 7NewsSydney - 🏆 16. / 63 Read more »

Inquest underway into cold case death of Mark Haines, Indigenous teen found on train tracksMystery still surrounds the 1988 death of Gomeroi teen Mark Haines, whose body was found on train tracks just outside of Tamworth. His loved ones hope the new probe will deliver the answers they have sought for so many years.
Source: abcnews - 🏆 5. / 83 Read more »

Protests and condemnation as Gaza war reaches six month markThe head of the World Central Kitchen has called for scrutiny of the Israeli airstrike which killed seven aid personnel in Gaza. Australia has appointed a special adviser who will monitor Israel's response to the attack.
Source: SBSNews - 🏆 3. / 89 Read more »

Air Chief Marshal Mark Binksin appointed to scrutinise investigation into Israeli air strikeThe government appoints former Defence chief Mark Binskin as special adviser to the investigation into an Israeli air strike that killed several aid workers, including Australian woman Zomi Frankcom.
Source: abcnews - 🏆 5. / 83 Read more »