Global Financial Crisis
Q. Wasn’t the Global Financial Crisis caused by non-bank lenders in Australia?
A. Nonsense. It had nothing whatsoever to do with non-bank lenders in Australia. The Global Financial Crisis was caused by large volumes of bad or “sub-prime” loans being written in the USA, which resulted in uncertainties by financial markets world wide. Australia does not have “sub-prime” loans and in fact mortgage lending in Australia is now regarded as amongst the most strongest in the world. The extent of regulation in Australia over many decades has protected our nation from the pitfalls that others have fallen into.
Q. What is the Global Financial Crisis and how does it impact on my Mortgage?
A. As part of our market update analysis for our Clients, we have prepared a detailed overview of facts and opinions surrounding the impact of the Global Financial Crisis on Borrowers and the First Australian Client Family. This is only available to First Australian Clients.
Q. Didn't the Federal Government provide money for mortgages as part of its stimlus package to help the Australian economy survive the Global Financial Crisis - how does this work with lending and how does it effect my mortgage?
A. The Federal Government now funds large numbers of mortgages in Australia, as part of its response to maintain economic activity through the Global Financial Crisis. Most of the funds we administer are currently provided by the Federal Government through the Australian Office of Financial Management and are regulated to protect Borrowers. This has fostered continued competition within Australia's mortgage market and means that your loan with First Australian is very competitive. The interest First Australian charges on loans is kept to the minimum. Borrowers at First Australian are charged only what is necessary to raise the funds and administer the loan. We are here for the long term and we want our Borrowers to be able to meet their obligations as we journey with you to the other side of the Global Financial Crisis.
