Many are further away because they have severely damaged their credit. So many of our people are not fully aware of what the consequences would be for running up their credit. These days with the craziness in the use of credit cards, people have resorted to paying their grocery bills with credit cards, not fully cognisant of the expensive interest charges associated therewith. Anecdotal evidence suggest an increase in the use of credit that have a short term perspective and the use of limited resources to acquire goods which have an in built obsolescence, such as cars. A lack of knowledge of the resources available is a big part of the problem.
Many people have no access to information that is relevant and useful.
Educating customers through Home Ownership Day is the preferred way of helping to balance the scales. One step in that direction would be for lenders to give consumers more information about what factors cause them to be denied a favourable loan or require them to pay a higher interest rate. It means talking to borrowers on a level they can understand, explaining the mortgage process and what needs to be done to get approved. Part of the job is making the borrowers feel comfortable. We must dismantle the walls between the borrower and lender.