No matter how low interest rates may fall, banks should make sure new borrowers can repay their debts with mortgage rates of at least 7 per cent, new guidelines have confirmed.
The guidance, already widely followed across the industry, was formally adopted in a new policy that entrenches tougher rules on bank mortgage lending from the Australian Prudential Regulation Authority.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
"APRA's 2014 hypothetical borrower exercise found such buffers wanting at many institutions, but last year's survey showed all institutions at least complying with the minimum 7 per cent interest rate required by APRA." You just don't know what you are talking about. Clearly the housing market isn't anything like you think.
No, a recommendation was made in 2014 and by your own quote a hypothetical testing of these recommendations found the banks were not following the rules. Then there's this gem
"APRA data shows a recent uptick in loans approved outside serviceability; anecdotal evidence indicates much of this relates to loans in the pipeline that were pre-approved under older, looser criteria now being settled. So we expect to see this volume taper off," Ms Richards noted.
So even up until March 2016 there was a significant number of loans being written outside this 7% recommendation. It also alludes to declared expenses by the mortgagee, indicating that applications may not reflect the true circumstances of the individual. Pete should know that this is an old favourite of brokers, it's amazing how the stress test of 7% that creates a shortfall of around $1200pm on a $500k can be eliminated by failing to disclose, I don't know, around $1200 of expenses.
Who do blokes think your kidding with this shit, you can't just throw out half truths and think there not going to be challenged. This is why no one trusts a word you say because it's always deceitful.
It's "they're" actually - Sheesh, it's one thing ta talk lotsa poor bugger me shit - But I do wish ya'd AT LEAST stop butcherin' tha Inglish language - LOL
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
No, a recommendation was made in 2014 and by your own quote a hypothetical testing of these recommendations found the banks were not following the rules. Then there's this gem
"APRA data shows a recent uptick in loans approved outside serviceability; anecdotal evidence indicates much of this relates to loans in the pipeline that were pre-approved under older, looser criteria now being settled. So we expect to see this volume taper off," Ms Richards noted.
So even up until March 2016 there was a significant number of loans being written outside this 7% recommendation. It also alludes to declared expenses by the mortgagee, indicating that applications may not reflect the true circumstances of the individual. Pete should know that this is an old favourite of brokers, it's amazing how the stress test of 7% that creates a shortfall of around $1200pm on a $500k can be eliminated by failing to disclose, I don't know, around $1200 of expenses.
Who do blokes think your kidding with this shit, you can't just throw out half truths and think there not going to be challenged. This is why no one trusts a word you say because it's always deceitful.
I'm quite happy for you to remain ignorant and continue miscalling the market Chris.
Pretend the APRA rules don't exist, and just keep telling yourself house prices must crash due to 'bad loan quality'.
It's your own financial future that you're damaging, but carry on being wrong if you wish.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
No, a recommendation was made in 2014 and by your own quote a hypothetical testing of these recommendations found the banks were not following the rules. Then there's this gem
"APRA data shows a recent uptick in loans approved outside serviceability; anecdotal evidence indicates much of this relates to loans in the pipeline that were pre-approved under older, looser criteria now being settled. So we expect to see this volume taper off," Ms Richards noted.
So even up until March 2016 there was a significant number of loans being written outside this 7% recommendation. It also alludes to declared expenses by the mortgagee, indicating that applications may not reflect the true circumstances of the individual. Pete should know that this is an old favourite of brokers, it's amazing how the stress test of 7% that creates a shortfall of around $1200pm on a $500k can be eliminated by failing to disclose, I don't know, around $1200 of expenses.
Who do blokes think your kidding with this shit, you can't just throw out half truths and think there not going to be challenged. This is why no one trusts a word you say because it's always deceitful.
There were a few discounted loans being done as low as 6.5% but APRA stepped on that practice. It's just not happening Chris. If you can't service a loan at 7% plus you won't get a loan. End of story.
Because of that, poor people aren't qualifying for loans in Sydney and Melbourne.
Take risks - if you win you will become wealthy, if you lose you will become wise
You show me proof one bank stress tests loans to mortgagees for a residential loan at 7%.
f*** this is amateur hour
In addition to having your arse handed to you over the recent and current serviceability / stress test requirements, you are also forgetting that as recently as mid 2008 mortgage rates hit nearly 10% Chris! There was a rise in defaults at that time, but there was no housing market carnage as you would have expected. Household debt levels as a proportion of GDP have only upticked slightly since then as well, so the situation would not be all that different today.
There were a few discounted loans being done as low as 6.5% but APRA stepped on that practice. It's just not happening Chris. If you can't service a loan at 7% plus you won't get a loan. End of story.
Because of that, poor people aren't qualifying for loans in Sydney and Melbourne.
You read my comments about practises brokers use along with main four banks in order to meet stress test requirements but if you want to neibtsin the half truths that's fine Pete at least everyone can see in black and white how deceitful you can be. 6.5%, you think everyone is as gullible as your clientele.
Khaderbhai
9 Jan 2017, 09:47 PM
I'm quite happy for you to remain ignorant and continue miscalling the market Chris.
Pretend the APRA rules don't exist, and just keep telling yourself house prices must crash due to 'bad loan quality'.
It's your own financial future that you're damaging, but carry on being wrong if you wish.
I'm not ignorant, what part of what I said was ignorant?
I also add your personal comments have no correlation with what I wrote, what I stated had nothing to do with my personal views on property it's just factual. You blokes tried to present half truths and you got slammed.
It happens the best of us Shads, even a guru of deception like you.
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