Mortgage Funds - new relief rules announced by ASIC

Under new relief rules announced by ASIC last night victims of the mortgage fund freeze who are suffering hardship can now pull up to $100,000 a year from their accounts.

The Australian has reported that the corporate regulator has allowed access to frozen funds for those in financial need including the beneficiaries of deceased estates and the long term unemployed.

In the past mortgage funds could only release up to $20,000 plus half of an investor's remaining interest in a one-off payment.

The new cap of $100,000 can be accessed in four payments over a 12 month period.

A spokesman for the Challenger fund welcomed the changes and was delighted to be able to spread the good news to investors. The spokesman also added that once approved hardship payments could be made in as soon as seven days.

In October last year the mortgage fund industry was thrown into chaos when the Federal Government sparked fears that investors would flee the funds for the safety of the banks.

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Published on August 8-th, 2009 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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