More than 70pc of Australians will be facing the prospect of interest rate cuts on home improvement loan deals

More than two thirds of Australians are likely to face the prospect that their interest rates on loan repayments will be cut under a new government policy announced today.

A new policy from the Australian Government is set to see interest rates for the money loans for home improvements, which cover nearly two-thirds of all mortgage applications, halved.

Aboriginal Australians make up more than 70 per cent of the money lenders that are lending to borrowers.

Home improvement loans are a particularly popular type of loan and borrowers are also more likely to qualify for them than other types of loans.

In a recent statement, Treasurer Scott Morrison said the Government would take action to “safeguard our nation’s future”.

“The Government will be taking action to protect Australian families from the impact of a cut in the interest rates paid by the majority of home improvement lenders,” Mr Morrison said.

“While the decision to increase the interest rate on money loan repayings is not without precedent, this Government is taking a much bolder approach to ensure that the rate of interest on money loans remains unchanged.”

The Government says it will reduce the rate by about 25 per cent over five years.

“These changes will make it easier for borrowers to repay their loan, while protecting the Australian taxpayer from the negative impact of any changes to the rate,” the statement says.

It’s not clear if the Government is also cutting the interest the lenders pay on the loans.

“This announcement is in the best interests of borrowers and the Government will review the rate reduction over the coming months,” the Government said in a statement.

Topics:government-and-politics,business-economics-and‑finance,industry,loan,government- and-politics,”international-aid-and–trade,industries,business,government,national-security,australia,aesthetics,businesses-and,housing,wealth-institute-of-2066,nsw,federal-government,government—state-issues,budget,borong-3040,loans,loafer-loan-debt,national,aurelians-state-parties,nsp,nhl,auburn-4208,brampton-4215,melbourne-3000,vic”I don’t believe there is a single mortgage borrower that doesn’t have a mortgage that’s a product of a loan that was obtained through money lender, I think it’s a matter of time before it’s all washed out,” Mr Turnbull said.

The Federal Government’s announcement comes just days after the Treasurer announced the Government was cutting back on funding for overseas aid.”

We are also announcing we will be cutting back the funding for the Commonwealth’s overseas assistance programmes,” the Treasurer said on Friday.”

The Treasurer said he was putting a cap on funding to overseas assistance programs.

“Today, we are announcing a further cut to our overseas assistance program, which is a cut of approximately $3 billion, with the rest coming in from other areas.”

As well, we will announce a further $2 billion in funding cuts to the Commonwealths overseas assistance and our support to international organisations, in line with our commitments under the Commonwealth budget.

“All of this is designed to make it more difficult for overseas assistance to be used as a weapon to harm Australia and our economy.”

The Coalition’s national policy spokesman, Mark Butler, said the announcement was a victory for the Australian economy.

“I’m delighted that the Federal Government has listened to the advice of the Australian people, and listened to their concerns about the impact on the budget and the economy of cutting overseas assistance,” he said.

Mr Butler said the reduction in funding was the right move.

“What we’re saying is we’re going to take it from the money loan lenders, the money lender lenders, to the banks and the lenders,” he told ABC Radio National.

“When we cut back on foreign aid, we’re cutting off the ability for that money to be spent on foreign assistance programs, which are really important to the Australian and Australian-based economy.”

Mr Butler also said it was the Coalition’s intention to continue funding overseas aid programmes.

“Our budget is very, very tight,” he added.

“And we’ve been very clear that if we can’t make the budget work, we won’t fund overseas assistance.”

Topics:business-economic-disappointment,government_and-government-areas,aimex-2515,perth-6000,fiji,auckland-4810,lifestyle-and_leisure,aussies,united-kingdom

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