Welcome Guest [Log In] [Register]


Reply
Credit conditions easing? Bankwest introduce 97% home loan. Australian Subprime?; First-home borrowers still looking for no-deposit home loans
Topic Started: 16 Aug 2011, 02:17 PM (10,568 Views)
nuff_ced
Member Avatar


carter
16 Aug 2011, 09:19 PM
That's what I thought in 2008, but I underestimated the lengths the powers that be are willing to go to prop up the bubble.
True, but how many riots in the streets had we had in 2008? and how many since? The world is a much different place.
Profile "REPLY WITH QUOTE" Go to top
 
earthsta
Default APF Avatar


Aussiehouseprices
17 Aug 2011, 12:02 AM
Shadow
16 Aug 2011, 02:17 PM
With banks relaxing LVR requirements and cutting fixed rates, and the RBA set to slashing soon, do the bears still think the big crash is imminent?

Bankwest introduces 97% loans

LVRs have been this high for a long time now. I remember CBA was offering 97% about 6 months ago - and they still are today.
http://www.commbank.com.au/personal/home-loans/loan-to-value-ratio.aspx

To answer your question, I think a big crash is already underway. My guess is a 40% fall over approx 8-10 years.
I reckon 6-8 years....
Profile "REPLY WITH QUOTE" Go to top
 
Admin
Member Avatar
Administrator

http://news.ninemsn.com.au/national/8286134/no-concern-over-low-deposit-loans-buswell

Quote:
 
No concern over low-deposit loans: Buswell

13:43 AEST Tue Aug 16 2011

West Australian Housing Minister Troy Buswell is confident a new low-deposit home loan won't put the state on the same path as subprime mortgages in the US.

WA's Bankwest has launched a new home loan exclusively for the state's first home buyers which will require only a three per cent deposit on the value of the property.

Mr Buswell said the low deposit rate, which is well under the normal 20 per cent rate, would help many first home buyers aspiring for home ownership overcome a significant hurdle.

"Home ownership is a great aspiration we need to keep alive in our state, especially for young West Australians," he told ABC Radio.

"More broadly as a state we need to be building houses because if we don't build enough houses we get pressure in the property sector and that pressure at the moment is on rents."

Mr Buswell brushed aside concerns the new low deposit home loan could bring in first home buyers who will possibly struggle to meet the mortgage repayments.

Subprime lending to home owners in the US has been blamed as one of the factors in the global financial crisis, with high default rates by those could not meet mortgage repayments.

Bankwest said it had put in place strict lending criteria including a minimum annual income threshold of $80,000.

Mr Buswell said the loan would have to meet the requirements of the Australian Prudential Regulation Authority.

But from the experience of the WA government's Keystart home loans, which offer a four per cent deposit, there was a relatively low rate of defaults, he said.

"Of course people will have to be careful and cautious when they enter into these sorts of arrangements," Mr Buswell said.

"Banks do have obligations, broader social obligations, but also obligations to the regulator and their shareholders not to lend money that's going to present undue risk."
Follow OzPropertyForum on Twitter | Like APF on Facebook | Circle APF on Google+
Profile "REPLY WITH QUOTE" Go to top
 
Perthite
Member Avatar


My wifes workmate was telling me she got a keystart loan with only 2,000 deposit on a 380k loan with her boyfriend.... maybe its BS. My wife is having real trouble putting up with her since she was cut a day a week.
Profile "REPLY WITH QUOTE" Go to top
 
Admin
Member Avatar
Administrator

http://www.propertyobserver.com.au/mortgages/first-home-borrowers-still-looking-for-no-deposit-home-loans

Quote:
 
First-home borrowers still looking for no-deposit home loans

By Jonathan Chancellor

Friday, 28 October 2011

Potential first-time buyers continue to seek 100% no-deposit home loans even though banks no longer offer them.

Dean Rushton, chief operating officer of mortgage broker Loan Market says 7% of the brokerage's total enquiries during October 2011 had come from people wanting no-deposit home loans.

"There remains strong interest from people who want to enter the real estate market and borrow the entire cost of the property," Rushton notes.

"But the modern-day lending reality is that if you want to obtain housing finance you have to save for a deposit.”

In late 2008 at the onset of the global financial crisis homebuyers began to find it hard to get no-deposit loans from banks such as the Commonwealth Bank of Australia.

At the time the JP Morgan banking analyst Brian Johnson suggested stricter lending standards were here to stay.

"The era of getting very easy credit to buy a house is over," he suggested.

Aussie Home Loans boss John Symond was prompted to suggest the tightening signalled a return to sensible lending practices.

"Banks have got to have prudent lending," he suggested in 2008.

"People buying home in Australia with little or no deposit is a flawed process.”

Rushton suggests lending restrictions requiring genuine savings contributions of around 5% towards the property purchase demonstrates to the lender that you have the capacity to save money and budget.

He suggests would-be buyers are best off to develop a savings plan early to build a home deposit.

"Borrowers should consider saving for as large a deposit as possible as both interest and lenders mortgage insurance costs increase substantially the more you borrow," he says.
Follow OzPropertyForum on Twitter | Like APF on Facebook | Circle APF on Google+
Profile "REPLY WITH QUOTE" Go to top
 
nuff_ced
Member Avatar


"Rushton suggests lending restrictions requiring genuine savings contributions of around 5% towards the property purchase demonstrates to the lender that you have the capacity to save money and budget."


:lol: Saving a 5% deposit is sooooooo restrictive. Can't I just save 2% and I promise I'll pay the other 98% back.
Profile "REPLY WITH QUOTE" Go to top
 
Aussiehouseprices
Member Avatar


nuff_ced
28 Oct 2011, 10:09 AM
"Rushton suggests lending restrictions requiring genuine savings contributions of around 5% towards the property purchase demonstrates to the lender that you have the capacity to save money and budget."


:lol: Saving a 5% deposit is sooooooo restrictive. Can't I just save 2% and I promise I'll pay the other 98% back.
Why worry about a 2% deposit? You can still borrow up to 120% with RAMS!
http://www.rams.com.au/home-loans/flexible-features/fast-track/
Aussie House Prices blog
Latest post: Real Estate 101 - Lecture 1: Never use the "F" word
Profile "REPLY WITH QUOTE" Go to top
 
Admin
Member Avatar
Administrator

Quote:
 
RAMS eliminates mortgage application fees in January

By Larry Schlesinger
Tuesday, 10 January 2012

Mortgage franchise RAMS is looking to entice new borrowers in the slow month of January by cutting application fees on all its mortgage products.

“Apply for a RAMS Home Loan by 31 January 2012 and we’ll drop the application fee. Yes, we’re offering a $0 home loan application fee across our entire range of new loans – saving you $$$s!” says a message on the RAMS website.

The lender is particularly strong among first-home buyers.

RAMS, which is owned by Westpac, passed on both the November and December rate cuts in full.

The lender offers a standard variable rate of 7.18%, undercutting all the major banks.

NAB is the cheapest major lender, with a rate of 7.22%

Westpac’s standard variable rate is 7.36%.

Read more: http://www.propertyobserver.com.au/mortgages/rams-eliminates-mortgage-application-fees-in-january
Follow OzPropertyForum on Twitter | Like APF on Facebook | Circle APF on Google+
Profile "REPLY WITH QUOTE" Go to top
 
Trojan
Default APF Avatar


You don't have to go with RAMS to avoid the application fee.
Go with any lender and ask them waive the application fee and they will in the majority of cases - I personally have never paid an application fee on my mortgages.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
Profile "REPLY WITH QUOTE" Go to top
 
Deleted User
Deleted User

Trojan
10 Jan 2012, 10:41 AM
You don't have to go with RAMS to avoid the application fee.
Go with any lender and ask them waive the application fee and they will in the majority of cases - I personally have never paid an application fee on my mortgages.
Talk about lending business in here, I read from an article recently that regardless of a growing chorus to ban them, payday cash advances seem to be thriving almost everywhere they are allowed to be lent. Pay day loan shops are flourishing in the U.K., and their future in the United States seems all but assured for the future also.
"REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy