Trojan is correct. Much the same people will continue to buy houses.
A few years ago the concern was that FHB's were not buying. Now that we know that FHB's are buying as investors, the people who don't understand got concerned because there were too many investors in the market place.
Now with this rule change FTB's will be buying as owner occupiers but renting the house instead. Nothing much will actually change, but the stats will change to appear "normal" and APRA and the RBA will pat themselves on their backs for a job well done.
Trojan is correct. Much the same people will continue to buy houses.
A few years ago the concern was that FHB's were not buying. Now that we know that FHB's are buying as investors, the people who don't understand got concerned because there were too many investors in the market place.
Now with this rule change FTB's will be buying as owner occupiers but renting the house instead. Nothing much will actually change, but the stats will change to appear "normal" and APRA and the RBA will pat themselves on their backs for a job well done.
You gotta see the funny side of life sometimes.
Its just reverting back to normal. Rewind a few years when the FHOG was doubled and tripled and you got all these people buying and ticking the FHB box. They got the FHOG and the stamp duty concessions, lived in it for a mandatory 6 months (supposedly) and then moved back in with the folks and rented the place out. In the years since the FHOG was stopped, the same demographics were still buying but now they are ticking the investor box to get the bank to take the rental income into servicing considerations. With this new rule change, the buyers will yet again be the same but they'll tick the OO box for the lower interest rates.
Reminds me of the Australian torrent crackdown. A bunch of people started paying for VPN which exited in a different country ... the same people are downloading the same movies ... its just made it look like its overseas people doing the torrenting now. The Aust government then crows about how successful their new policies has been to curb Australians pirating movies ...
Trojan is correct. Much the same people will continue to buy houses.
A few years ago the concern was that FHB's were not buying. Now that we know that FHB's are buying as investors, the people who don't understand got concerned because there were too many investors in the market place.
Now with this rule change FTB's will be buying as owner occupiers but renting the house instead. Nothing much will actually change, but the stats will change to appear "normal" and APRA and the RBA will pat themselves on their backs for a job well done.
You gotta see the funny side of life sometimes.
This omits the fact that the affordability requirements are much more lenient for investors than OOs. Not only because of rental income, but also some banks take into account the NG tax benefit.
Also many potential investors have a pre-existing OO mortgage. They can't say that both of them will be OO mortgages.
Trojan is correct. Much the same people will continue to buy houses.
A few years ago the concern was that FHB's were not buying. Now that we know that FHB's are buying as investors, the people who don't understand got concerned because there were too many investors in the market place.
Now with this rule change FTB's will be buying as owner occupiers but renting the house instead. Nothing much will actually change, but the stats will change to appear "normal" and APRA and the RBA will pat themselves on their backs for a job well done.
You gotta see the funny side of life sometimes.
This is rubbish. The banks are out to make money from this. The banks are not there to help out APRA with some statistical sleight of hand.
This is rubbish. The banks are out to make money from this. The banks are not there to help out APRA with some statistical sleight of hand.
Don't know where you get your bearshit from ... the banks dont want to help out APRA ... rather they must comply with what APRA has mandated whether they like it or not!
National Australia Bank is raising interest rates on interest-only home loans, a move it says is aimed at slowing down housing investor credit growth and encouraging borrowers to pay down their debts.
The bank on Monday said it would raise interest-only rates by 0.29 percentage points, hot on the heels of Commonwealth Bank and ANZ Bank, which last week raised rates for investors by 0.27 percentage points.
The change will mean NAB's standard variable home loan rate rises to 5.72 per cent for interest-only customers. It will affect both existing and new customers with interest-only loans and lines of credit.
NAB said interest-only loans were the "predominant structure for investors," and it had been working closely with APRA, which is trying to limit risks in the housing market.
The bank said that while all home loans had grown by 27 per cent in the last three years, housing investment loans had jumped 34 per cent and interest-only loans were up 44 per cent.
Group executive for personal banking, Gavin Slater, argued the approach would support responsible lending practices.
"In an environment of record low interest rates, NAB believes it is important to encourage our customers to pay down their home loan," Mr Slater said.
Unlike the changes from ANZ and CBA last week, this change will affect owner-occupier customers who have interest-only loans.
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