What are your thoughts on this? I'm in 2 boats,
First boat – what a relief to have the stress of meeting mortgage repayments if you lose your job.
2nd bpat: tough titties if you rent – no one is worrying about keeping a roof over your head! And also, is this creating a false "prop up" of the property market?
Love to hear your opinions.I think it adds a temporary safety that may save some people from having their homes sold from under them or who will have to sell them voluntarily for less than they would like. It is only a deferral of interest payments – meaning borrowers will still need to pay the interest (accruing interest) down the track. Definitely better than nothing and it will help some people to sleep a little more soundly.
From what I was taking in from watching lateline business the concern is that if the banks do not allow a reprieve during times of unemployment (current recession) then the property market values drop and the banks start liquidating homes and incurring losses from the values dropping. Then you have banks failing over or declaring major losses and more job losses.
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