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Mark escaped mortgage prison. Thousands more remain trapped
23rd April 2024
Mark escaped mortgage prison. Thousands more remain trapped
For borrowers needing to refinance, the combination of higher serviceability standards and lower valuations can be painful, says Finance Brokers Association of Australia managing director Peter White.
While arrears are so far holding steady, says White, there is a concern that borrowers who purchased in COVID-19 may have done so in the belief that their tree-change or sea-change properties would continue to grow in value, and are now meeting unfavourable valuations as the market settles.
“People were prepared to pay just about anything for something. How well was the market understood? And how much did people want to listen to [the warnings]?”