Opposition joins the call urging financial relief for homeowners and renters

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on March 19, 2020
Opposition joins the call urging financial relief for homeowners and renters

Photo by Zane Lee on Unsplash

Shadow Minister for Housing & Homelessness Jason Clare has urged the Government to develop plans to stop people being foreclosed on.

These plans would be similar to what the UK and the US introduced recently, passing emergency legislation to ensure renters and mortgage holders are not forced out of their home if they fail to pay rent or their mortgage. 

The UK government announced this week a three-month 'mortgage payment' holiday, while US mortgage backers have halted foreclosures for 60 days.

Last night, President Trump announced a moratorium on all foreclosures and evictions for single family homeowners with Federal Housing Administration-insured mortgages for that period.

For renters in the UK, landlords will not be able to start eviction proceedings for at least three months.

These are much needed measures in Australia and these measures would prevent a total housing collapse, according to Mr Clare.

"More Australians are behind in their mortgage repayments today than at any time since the Global Financial Crisis, and rental stress is through the roof," he said.

"In addition to that, they should also take steps to make sure no one has their power, water gas or phone cut off because they, or their family, are affected by the virus and can't pay the bill.

"A practical plan needs to be developed as quickly as possible tailored to the situation in Australia."

This suggestion comes at the same time the Reserve Bank cut the cash rate twice in one month for the first time.

The cash rate sits at 0.25%, theoretically making mortgages cheaper as lenders slash their interest rates.

Looking to refinance your home loan? Below are variable owner-occupier loans with some of the lowest interest rates in the market.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
  • The shorter your loan, the less interest you pay in the long run.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
UNLIMITED EXTRA REPAYMENTS
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

    Variable
    More details
    EASY DIGITAL APPLICATION
    EASY DIGITAL APPLICATION

    Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

      Variable
      More details
      $0 APPLICATION FEE
      $0 APPLICATION FEE

      Budget Home Loan (Principal and Interest) (LVR < 80%)

        Variable
        More details
        100% FULL OFFSET ACCOUNT
        100% FULL OFFSET ACCOUNT

        Offset Package Home Loan (Principal and Interest) (LVR < 60%)

          Variable
          More details
          LIMITED TIME OFFER
          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services
          LIMITED TIME OFFER

          Smart Booster Home Loan Discounted Variable - 1yr

          • Fast turnaround times, can meet 30-day settlement
          • No ongoing or monthly fees, add offset for 0.10%
          • Extra repayments + redraw services

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 3, 2022. View disclaimer.

          The changes recommended by Labor are similar to those proposed by the Greens, with Greens spokesperson for Housing, Senator Mehreen Faruqi, calling for emergency measures to support renters during the pandemic. 

          Ms Farqui's suggested measures include:

          • An eviction moratorium: State and Territory laws govern evictions with most allowing for eviction if the tenants are 14 days or more behind with their rent. This should be scrapped immediately
          • Fund crisis housing: The Federal Government must increase homelessness funding under the National Housing and Homelessness Agreement to $500 million per year and release these funds immediately to States and Territories
          • Freeze rents: A nationwide rent freeze with no increase in rent from the start of 2020 and for the duration of the health crisis.Commonwealth Rent Assistance (CRA) should also be increased.

          “In the developing crisis, the government has a responsibility to ensure that no one ends up at risk of homelessness or further rental stress. We must take immediate steps to ensure that no one can be evicted," she said. 

          During a health crisis, people without a roof over their heads risk exposing themselves or others to the disease. 

          Real Estate Institute of Queensland (REIQ) Chief Operations Officer Josh Callaghan told Savings.com.au yesterday that governments, banks, tenants and property owners all need to work together to find solutions that prevent people from entering into homelessness.

          "The REIQ's goal is to ensure all Queenslanders, and Australians, have safe, secure housing and during this unprecedented event all parties need to work together to ensure our housing market is sustainable."

          Prime Minister Scott Morrison is set to announce a second round of stimulus: Changes like the ones recommended could be included. 


          Disclaimers

          The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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          author-avatar
          Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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