tcboss, all it does is offer those people, who already had decided to go with the loan, to ensure they sign up by the due date...if it all adds up.. just because they are home buyers....does not mean they are stupid...or deserve ridicule... as per some of the posters on this forum
so for the 24 year old family member...he has decided to go for it... he says to himself....oh great that pays for the new stove, or dishwasher, or tv...he needed, it is simply a bonus, he was not counting on...it is not a big deal, but its worth taking up the offer... after he has decided he is getting the best deal... if the interest rate is higher,...than his current deal....he is not that stupid, to accept a lousy $1000 bonus
I doubt it turns anyone who was not ready to sign up... or was out of their depth, or is a huge marketing tool....
it just gives some of them an extra tool themselves...to bargain for a bit more of a discount from the ... great big ugly bankers....(bears view) or the nice bankers (non bear view)
the truth is, out there, in this other 'brave new world' there are a stack of people, who will not qualify for a home loan....in 2011....(they may have in earlier days)
but the lenders have moved the goal posts again.... so there are many people, who under the new rules, will only get 50% of the loan they need today....
hence the constant noise....for discount home prices....
dont be fooled by, what appears to be, lax new rules, or easy credit, as their advertising may indicate....
that ploy is to satisfy the pundits, regulators, to show the banks are pretending to lend, to this most important market... in reality, its not really false advertising....its just not what is said....there are loaded bullets, waiting to trap those who believe credit is still easy...
so if you want to test the bankers....go and have a go, at getting a loan....more will be declined, or there will be a blocker....that stops the loan...
if you are on the sidelines, looking in, tyre kicking.... it may seem loans are easy to obtain...
those actually out there, applying for same, are finding the oppposite is the case.... it is still not as hard as it was in the bad old days, when the boomers were the first home buyers.... when they needed 6 months proof of savings....and all the other 'bars' to home ownership, that the banks imposed...
no wonders the boomers will not give in easily, and sell the houses, they are using for their own personal non super, pension scheme...
on another note....some of the boomer generation that did invest in super funds....will be forced to bail out of their stocks....under the new proposed changes to capital gains tax for the diy superfunds....
more of those investors held stocks, rather than property in those funds.... no wonder stocks are in for a torrid time....versus the safety of property
