Hungry for money: large banks refer homeowners struggling to pay the mortgage to FOOD COSTS used by homeless people and people on benefits – so they don't fail
- The Foodbank charity provides traditional food to the unemployed and the homeless
- Chief Greg Greginson said that banks had approached his group for help
- He said that lenders were worried about borrowers who struggled to repay their loans
Australian banks are approaching a charity that provides traditional food to the homeless, so that their borrowers do not fail to pay back their mortgage.
Although interest rates are at record levels, many Australians spend a third or more of their wages on maintaining their home loan – a situation called mortgage stress.
Greg Pattinson, Foodbank CEO, said several banks were worried about borrowers' inability to meet their monthly repayments.
Australian banks are approaching a charity that traditionally provides food to the homeless, so that their borrowers do not repay their mortgage
& # 39; Oh absolutely. We were also approached by a few banks, and I'm not going to say which one, & he said to Daily Mail Australia on Wednesday.
& # 39; Mortgage stress is certainly one of them. & # 39;
Mr. Pattinson said that more and more people who needed help also had work.
& # 39; The people who receive the necessary food aid, the demographics have changed considerably, & # 39; he said.
& # 39; Although stereotyped unemployed or homeless people are still part of the receiving file, more than 50 percent are working people, so people who have a job and for whatever reason cannot make ends meet. & # 39;
The revelation about those in need of food was released when the Australian Housing and Urban Research Institute discovered that the mortgage debt among people over 55 had risen by 600 percent in less than three decades.
Charity Foodbank said an increasing number of people helping them had a job (the photo shows a young couple in financial stress)
The average debt levels, corrected for inflation in real terms, were multiplied from $ 27,000 in 1987 to $ 185,000 in 2015 when the average debt / income ratio & # 39; s tripled from 71 to 211 percent.
Foodbank chief Greg Pattinson said banks are concerned about the inability of borrowers to meet their monthly repayments
At that time, the proportion of older Australians still paying off a mortgage had doubled from 14 percent to 28 percent, as the average annual mortgage payments increased in real terms from $ 5,000 to $ 17,000.
Lead author Professor Rachel Ong of Curtin University said that the price increase of real estate in the main cities of Australia in the last three decades was largely due.
Mr. Pattinson said that the banks & # 39; generally wanted to try to help their customers & # 39; to pay off their mortgage payments without throwing them on the street.
& # 39; In recent years, we have been seeing more and more … non-traditional agencies and organizations come to us and say, "We have identified people who need help, is there a way to connect them to Foodbank?" ? "," Said Mr. Pattinson.
Foodbank supplies food through welfare institutions, including the Salvation Army, St. Vincent de Paul and the Red Cross.
It accepts donations from farmers, retailers and food producers.
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