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Call to apply home loan rules only in Sydney, Melbourne; Mortgage crackdown is hurting us: regional banks
Topic Started: 25 Sep 2017, 01:28 PM (626 Views)
herbie
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Couldn't be bothered reading it - Tho it might be of some interest to some others?

Hmmm - With me recalling Rufus suggested something similar/akin to same here not all that long (a yr?) back maybe???

http://www.smh.com.au/business/banking-and-finance/mortgage-crackdown-is-hurting-us-regional-banks-20170922-gymogp.html
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Rufus
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herbie
25 Sep 2017, 01:28 PM
Couldn't be bothered reading it - Tho it might be of some interest to some others?

Hmmm - With me recalling Rufus suggested something similar/akin to same here not all that long (a yr?) back maybe???

http://www.smh.com.au/business/banking-and-finance/mortgage-crackdown-is-hurting-us-regional-banks-20170922-gymogp.html
It's an article by Clancy Yeates.

Extract -
Quote:
 

Mortgage crackdown is hurting us: regional banks
Clancy Yeates

The major banks' main domestic rivals are calling for an overhaul of the prudential regulator's caps on property investor and interest-only mortgages, claiming the curbs are stifling competition.

Proposals from the second-tier lenders include clamping down on mortgages only in the hottest property markets such as Melbourne and Sydney, or putting tighter speed limits on the big four than the rest of the industry.


In struggling markets such as Perth, it's usually investors who first go back into the market and buy, but if the APRA regulations prevent banks from lending to those investors via some artificial limit, then it interferes with the normal process of market recovery.

Clancy's point seems to be more towards giving smaller banks a leg up to counter the advantages that the big four have in the market.
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zaph
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Rufus
25 Sep 2017, 01:42 PM
It's an article by Clancy Yeates.

Extract -



In struggling markets such as Perth, it's usually investors who first go back into the market and buy, but if the APRA regulations prevent banks from lending to those investors via some artificial limit, then it interferes with the normal process of market recovery.

Clancy's point seems to be more towards giving smaller banks a leg up to counter the advantages that the big four have in the market.
I thought the banks had already become tougher with Melbourne and Sydney loans? Rufus?
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Rufus
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zaph
25 Sep 2017, 02:13 PM
I thought the banks had already become tougher with Melbourne and Sydney loans? Rufus?
They have become tougher for all investors everywhere, not so much just Melbourne and Sydney.
The newspapers have printed some stories about new restrictions for some suburbs. In fact they have always had restrictions on high density suburbs, but it has been expanded recently. Partly because of the developments in those suburbs which has changed the demographics. Any suburb with a cluster of towers might be on the list.

There are so many lenders all with slightly different lending policies often it's just a matter of research. Still it is more difficult to get a high LVR loan in the CBD or other high density high rise suburbs.

It's case by case but if an investor has a big deposit and a strong cashflow, they will still get their loan. It's less well off investors and FTB's who miss out.
Ultimately the restrictions will just mean less housing stock, they will then be eased which will push prices up, and the cycle starts again.

Edited by Rufus, 25 Sep 2017, 03:30 PM.
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Bardon
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Any relaxation would be welcomed by us out in the boonies.
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Katt
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Indeed, Sydney and Melbourne would take long in saving deposit for home loans.
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