ALWAYS BE DILIGENT WITH YOUR RESEARCH
- Written by Melanie Toye, November 8, 2013
Another timely reminder from the Australian Securities and Investments Commission (ASIC) about those in the mortgage industry who are not following the right protocols.
ASIC recently banned a Melbourne mortgage broker, Mr Tony Quach for five years. Quach also had his Australian credit licence of his company, TQ Smartchoice Pty Ltd cancelled.
ASIC found Quach had submitted six home-loan applications to two lenders that contained false or misleading information.
In all cases, the details were not verified with the applicants.
"ASIC takes allegations of loan fraud very seriously. We will continue to remove from the industry those involved in misleading loan applications," said Peter Kell, ASIC Deputy Chairman.
Through ASIC's investigation, they discovered Quach had supplied false and misleading information relating to applicant's' income, employment and savings.
In some instances, Mr Quach failed to meet the applicant before submitting an application to a lender. In other instances, Mr Quach met the applicant yet submitted applications including information and documents obtained from a person other than the applicant.
Quach had made declarations to lenders that he had met and obtained all the information from the applicants.
ASIC's investigation in the matter is continuing. Quach and TQ Smartchoice Pty Ltd can make an appeal.
Another great decision by the Reserve Bank of Australia Board that all Australian home owners will be cheering about. On 2 September, the Board decided to leave the cash rate unchanged at 2.5 per cent.
This gives mortgage owners a chance to continue to add additional money into their mortgage without the funds being chewed up by high interest charges.
And because of this, mortgages will be paid out much quicker. In some cases, if a mortgage owner adds an additional $200 a week into their mortgage. They might be able to chop five years, off their total loan amount. Can you imagine not paying a mortgage repayment anymore? Well, if you pay extra in your mortgage while taking advantage of the low interest rates, you could be living without a mortgage much sooner than you except.
The things you could do with that extra money. Maybe even put it towards a holiday home, or investment property, or building your super, or just taking a wonderful holiday somewhere.
Sooner or later, interest rates will climb again. There is no doubt about that. So taking full advantage of the low interest rates now, is in your favour.
Pending on who your mortgage is with, you might be able to put the additional payments into a redraw facility, in case down the track you need to use it for an emergency.
Some mortgage owners put their additional funds into a savings account to earn interest. But say $5,000 in savings a year, you earn $100 in interest and then taxed from the interest you earned. Would it be more for your end pocket if your savings were put against your mortgage?
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