The Australian Competition and Consumer Commission has published advice on its website to assist home owners experiencing difficulty meeting mortgage repayments.
"The ACCC is aware of the increased pressure on families resulting from higher mortgage commitments and is concerned about reports that some businesses may be employing unscrupulous practices to take advantage of vulnerable home owners," ACCC Chairman, Mr Graeme Samuel, said.
"The ACCC has received reports that some businesses are targeting home owners struggling to meet mortgage repayments with the promise of a quick sale at prices below market value."
Mr Samuel said the purpose of the new Managing your mortgage web page is to provide some practical steps for home owners to take if they are experiencing financial difficulties before they consider selling their home. Key tips 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, and
- if a sale is necessary, arrange a number of valuations to get the best deal.
The new page is located on the ACCC website, www.accc.gov.au. The page also 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.
"The information contained on the Managing your mortgage page is general guidance only and recommends that home owners seek independent advice as soon as possible if they are experiencing financial difficulties," Mr Samuel said.
Mr Samuel acknowledged the assistance provided by consumer groups including Kildonan Uniting Care, Consumer Action Law Centre, the Australian Financial Counselling and Credit Reform Association and the Consumer's Federation of Australia in the preparation of this material.