Now Here is a Bright Idea – ING to Introduce ‘Never Ending’ Mortgage

Source: National Mortgage News

Homebuyers in Australia soon can choose what’s being called a “never-ending” mortgage in an attempt to overcome that nation’s affordability crisis. According to a report in The Sunday Telegraph, ING Direct, the nation’s fifth largest residential funder, will originate loans that have no fixed term and no requirement to repay any principal at all. At current rates, the interest-only loans would cut repayments on a $300,000 mortgage by $5,000 a year, the newspaper reported. Repayments would be kept to a minimum, allowing borrowers to benefit from capital growth in their property. “People are needlessly being denied the chance to buy a property while prices spiral rapidly out of their reach” said ING Direct CEO Don Koch. He added that “There is an urgent need to provide more affordable options and borrowers should be able to choose whether they want to repay the capital, or not.” During the U.S. housing boom (which is now being called a bubble) American homebuyers used interest only loans in a similar fashion, but investors speculating on home values also used the product. In America IOs are still being originated but at much reduced volume levels, according to figures compiled by the Quarterly Data Report, a National Mortgage News publication.

4closureFraud

Comments
2 Responses to “Now Here is a Bright Idea – ING to Introduce ‘Never Ending’ Mortgage”
  1. Maybe I am just tired,,but I don’t seem to follow this idea to well. It say’s.. ‘at current interest rate,’ so if in future interest goes back up..what gives there..alot higher interest rate? Also does this mean you never really own the house? Sounds like you are renting it if you never have to pay for it. Sure sounds like an Aussie form of an ARM’s optional. Or did I miss some key words..I read it twice. But when the hair stands up on my arm’s..that tell’s me something is amiss. This country has been screwed over with that interest only crap..brokers and banks made it sound so good..so everyone could own a house. Sure..and it only took a few years and everyone lost their homes. I just don’t trust any bank, wherever, anymore. The old way of mortgages were the best…same bank for 30 years. Notes and mortgages were kept at the same bank. But today, in order to make their millions in salary and millions in bonus they go the fraud way to gain. This was and is the reason for the housing mess of today. And the fraud still goes on. This CEO needs to be sat down and told the real facts of ‘ America’s ‘ ARM’s interest only loans that had a bank prediction of going into foreclosure within a few years. I say this idea is a rent to own..meaning you pay the property taxes, home owners insurance and up keep of the house…never to own it…and the bank is the landowner…

  2. Um, I don’t get it………..”originate loans that have no fixed term and no requirement to repay any principal at all”.

    I guess that’s another “housing prices only go up” strategy? Take heed, Aussies, that same bill of goods we Americans were sold didn’t work out so well for us.

    Wonder if there’s a bonus cornucopia full of promises to refinance these “loans” in the future?

Leave a Reply