The Australian Competition and Consumer Commission (ACCC) today released a new section on its website - Managing your Mortgage - to assist those home owners experiencing mortgage stress or who are struggling to meet their mortgage repayments.
The issue was first raised by the Federal Member for Blaxland, Jason Clare, who drew attention to certain unscrupulous practices of real estate operators in Western Sydney, targeting home owners that are both under financial pressure and looking to sell quickly.
“Homeowners under financial pressure need to be aware of all the options available to them,” Consumer Affairs Minister, Chris Bowen said.
“Homeowners, particularly those in Western Sydney, need to be aware of the superficially attractive ‘quick sell’ techniques of certain home buying companies, as well as offers to refinance a loan that may leave a family even worse off than before.
“The purpose of Managing your Mortgage is to provide a practical guide for those under severe financial stress that outlines important steps that can be taken to avoid a home repossession.
“Home owners should always of course seek independent financial advice if they end up in serious financial difficulties.
Key tips in Managing your Mortgage include:
- Seeking independent advice from a financial counsellor, community legal centre or legal aid office to identify possible courses of action
- Talking to the lender as soon as a problem is identified to discuss options
- Checking all the terms and conditions of new loans before deciding to refinance
- If a sale is necessary, arrange a number of valuations to get the best deal
“The Rudd Government is also keen to tighten laws surrounding property ‘spruiking’ whereby investors are targeted in highly charged environments at a fast pace, giving them little time to digest the information or understand what they are buying into,” Mr Bowen said.
“The Government’s Green Paper on Financial Services also covers options for reform of laws that govern property investment advice and ‘spruiking’.”
When it comes to real estate advertising there are also protections under the Trade Practices Act and in the case of families in Western Sydney, under the NSW Fair Trading Act 1987 concerning misleading or deceptive conduct and false representations.
The new page is located on the ‘For consumers’ pages of the ACCC website (www.accc.gov.au) and provides links to relevant pages on the Australian Securities and Investments Commission consumer website FIDO where home owners can find in-depth guidance on managing loans and mortgages and protecting wealth in the family home.
For further information on Managing your Mortgage or if consumers have any concerns about illegal activities in this area they should contact the ACCC Infocentre on 1300 302 502.
CANBERRA
15 June 2008