NATIONAL AUSTRALIA BANK slipped into a small loss over the past six months after its profits were ravaged by bad debts and a series of one-off charges, including looming tax headaches in New Zealand.

COMPETITION in the home loan market has collapsed, with the big four banks now writing almost every new mortgage as small lenders are squeezed out of contention.

THE Productivity Commission chief has singled out the Government's bank borrowings guarantee as an impediment to competition. Commission chairman Gary Banks has proposed "unhitching" banks from the guarantee as soon as possible.

Second mortgages can be a convenient source of investment capital, but you must be careful not to overextend yourself.

Second mortgages for people with a bad credit history are generally quite rare, as it is difficult to maintain the first mortgage if you are irresponsible with credit.