Banks have what are termed SLA's which is a service level they offer brokers for processing loans. Normally those service levels are 48 hours, but when they don't have high volumes of applications that can become 24 hours.
What that means is that in normal times they pickup and start work on a deal within 48 hours and usually issue a decision rather quickly unless there is more information required. Right now those SLA's have blown out to 72 and 96 hours for most banks because they are bring hit with high volumes of loan application. This is after a long period of high loan volumes when banks have a lot of well trained experienced processors and assessors on the ground. It's not a situation where there has been a sudden change that has taken them by surprise.
High volumes of loan applications means high sales volumes.
The many predictions of a housing slump on this blogsite are just hopelessly wrong. Unless there is a serious changes such as rapidly rising interest rates or APRA induced regulatory changes, then this situation won't change for at least 12 months. Get used to it.
Could it be a possibility that a lot of people are refinancing on the fear that rates will be going up in the next 12-24mths and are wanting to refinance and lock in the lower rates (as they see it)?
One way to look at it is incredible volumes of new customer mortgages etc, which would support your initial statement, and another way to look at it is that there is a very slight or not so slight panic going on for existing mortgage-holders....
It would be interesting to see the breakdown as it may shed more light on the probability of either scenario above....
Could it be a possibility that a lot of people are refinancing on the fear that rates will be going up in the next 12-24mths and are wanting to refinance and lock in the lower rates (as they see it)?
One way to look at it is incredible volumes of new customer mortgages etc, which would support your initial statement, and another way to look at it is that there is a very slight or not so slight panic going on for existing mortgage-holders....
It would be interesting to see the breakdown as it may shed more light on the probability of either scenario above....
I doubt that there has been any significant change in refinance levels.
According to the AFG June data refinancing was 38.6% of the loans written. The next report will be out in early October so maybe that will give us some information.
Any expressed market opinion is my own and is not to be taken as financial advice
Banks have what are termed SLA's which is a service level they offer brokers for processing loans. Normally those service levels are 48 hours, but when they don't have high volumes of applications that can become 24 hours.
What that means is that in normal times they pickup and start work on a deal within 48 hours and usually issue a decision rather quickly unless there is more information required. Right now those SLA's have blown out to 72 and 96 hours for most banks because they are bring hit with high volumes of loan application. This is after a long period of high loan volumes when banks have a lot of well trained experienced processors and assessors on the ground. It's not a situation where there has been a sudden change that has taken them by surprise.
High volumes of loan applications means high sales volumes.
The many predictions of a housing slump on this blogsite are just hopelessly wrong. Unless there is a serious changes such as rapidly rising interest rates or APRA induced regulatory changes, then this situation won't change for at least 12 months. Get used to it.
So you are saying that everything is awesome and there is no debt problem in this country ? and the job market is healthy and mining towns does not have a downturn, and business is flourishing ???? Is that what you're saying ???? If everything is so awesome why the RBA needs that record low interest rate then ???? Am I the only one that feels that something is fundamentally and economically wrong with this equation.
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