I wondered what these “mortgage accelerator” loans that advertise on the radio all the time were all about.
It turns out a Peoria Realtor, Chris Butterworth, has done all the leg work for us on mortage accelerator loans.
The ads say they are big in Australia but here is a note from an Australian!
The misleading and deceptive conduct included showing clients comparisons between loans arranged by the company and standard loans, that represented that by switching loans they would save money and pay off their home loan sooner but failed to adequately explain that to obtain this benefit clients would need to make extra repayments.
Despite the action from the regulators above, there is still some promotion of this type of scheme, but much less than in the US.