The problem with this statement is that the people who have been put in place to stop over borrowing are in half the cases doing the exact opposite- encouraging more borrowing. Needless to say the people I speak about are brokers/financial managers who earn commissions for signing up a client. The bigger the loan the bigger the one-off or trailing commission.
Also if you listen to some of the ads that builders or developers are putting out that you will understand why some of these borrowers have been fooled to over borrowing. 'Why pay rent when you can pay the same to own your own home'. <-- some of the ridiculous ads that have been put out. Clearly only mentioning the mortgage repayment rates and not including other costs such as council rate, strata fees (if applicable), water/sewerage rate, house and content insurance, maintenance and repair, LMI (if applicable).
WBC Price at posting:
$17.58 Sentiment: None Disclosure: Held
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