The changes to current support for mortgage interest (SMI) will likely cause hardship for low income earners. Under the current system, homeowners are eligible for government interest subsidies for home mortgages. Under the new state-backed loan systems, homeowners’ that have previously received interest subsidies will need pay back the interest subsidies. The longer the homeowner have claimed for these subsidies, the more money the homeowner will have to pay back. However, the homeowner will only be responsible for interest repayment if there is equity on the property once it is sold.

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