Welcome Australia has weighed into the senate inquiry into low-doc and no-doc loans, claiming that lenders preyed upon vulnerable Australians.
According to the submission from Welcome Australia, families and individuals continue to suffer the loss of their homes due to the “questionable” behaviour and policies of financial institutions.
“For the past ten years, Low-Doc and No-Doc loans have been the catalyst in generating multi-million dollar incomes for banks, financial institutions and speculators in the property market,” Anthony Halpin, director of Welcome Australia said.
“Marketing campaigns have targeted those who have retired, many of whom survive solely on the pension, luring them to mortgage their properties while offering them the world.
“The majority of these retirees have no idea as to the true picture of what is actually taking place, for once they sign that contract the money begins to flow, to the bankers, the financial institutions and the property speculators, while the investor/retiree begins to witness the dissolution of their asset, their family home.”
In the submission, the non-profit organisation recounts the story of a client who went from owning her own home to owing various lenders a total of $400,000, claiming it is just one case in an “avalanche” of very similar cases.