Mysteries of an Australian Mortgage Loan
Mysteries of an Australian Mortgage Loan

The makings of the Australian Mortgage Loan

Big Banks earn their multi-billion dollar profits from mortgage loans. Bank CEOs take home multi-million-dollar salary packages. They don’t do that by looking after the interests of customers but by looking after their own interest first and foremost. Bank loans and more importantly difficult bank debt are money-spinners for bankers. But there is at least one bank that does tend to look after their customers, so all is not completely lost. Profit is why banks whole-heartedly support increased migration. Migrants need housing and housing requires lots of mortgage loans. Firstly the construction companies borrow from the banks to build the homes. Then the home-buyers take out a mortgage loan to buy a home. Then many home-buyers will borrow again to establish or buy a business or farm. Schools and hospitals if built at all, may required mortgage finance or contractors as do roads and public transport.

Specifics of a loan

A mortgage loan requires very specific payments to the bank at very specific times and very specific behaviour by the borrower over such a long period of time that in many cases it is impossible for the borrowers to know that they can meet all those repayments on time. The loan has very strict and damaging penalties written into it that most borrowers never read, understand or consider. A few days overdue once can be a default. Loan contracts are written in legalese so that most borrowers cannot understand what they are signing up for. GBAC always suggests that borrowers get a lawyer to advise them on contract terms and work through each paragraph with them. Sometimes the secret clauses have been hidden away in the contract where they are unlikely to be seen by the borrowers. What GBAC set out to do once banks were freed of the shackles of regulation was to provide bank debt solutions for businesses and farmers, two vulnerable groups of borrowers. Has the bank included a clause that you have to sell the mortgaged property? Has the bank inserted a clause that you must do something by a certain date that is impossible? Can it call in the loan at any time? Do you agree to give the bank your Power of Attorney so that it can sell your place or operate on your bank account when  it likes.

Bank Control

The bank is always in control because it holds a mortgage over the land and buildings which entitles it to sell them up at the slightest breach of conditions by the borrower. More banks and brokers than one imagines trick borrowers into mortgage loan contracts that they stand a good chance of being unable to adhere to. Banks then have them locked into the mortgage at higher rates of interest. Many never escape, though all who come to GBAC are offered that opportunity. When they accept that offer they move from underdog to control and for those who stick with GBAC until their debt is cleared they can make a lot of money out of the exercise.

Find out first

Borrowers would do well to consult GBAC before they borrow to make sure that the loan contract is designed so that they can meet its terms and do not get into trouble on the way. Greg Bloomfield established the GBAC Bank Debt Consultancy from his Chartered Accountancy practice when he saw how banks were robbing, cheating and defrauding their business and farm clients, long before the Royal Commission revealed that to the nation. His passion is fairness which is why he also formed FairGO to help Australian voters who felt let down by their politicians.

Speak quietly and carry a big stick

GBAC consultants are very polite but they carry that big stick. They know what to look for in the bank’s performance to find out what it is doing wrong. The banks are  so concerned about being investigated that they have formed organisations of their own that sound independent, but are really the banks in disguise. Wolves sheep’s clothing! Before signing a mortgage ( literally a death pledge) or engaging in a battle with a bank, a borrower would be very wise to have a chat with the consultants at GBAC. Everyone has their field of expertise due to aptitude, qualifications, experience and personality. At GBAC we have a very healthy dislike of bank malpractice on the basis of decades of dealing with it.

Celebrating with a discount

For the first time ever, to celebrate the birthday of its founder GBAC is offering a 10% discount to new and existing customers who own and operate businesses and farms anywhere in Australia.  GBAC deals with people as far apart as King Island in the south, Far North Queensland in the north, The Kimberleys in WA. The discount applies during August, so if you want help with any aspect of a bank mortgage loan, from application through disputes to foreclosure, contact GBAC and enjoy discounted services for the whole of August.

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