Finance - Mortgage

Most home loans still deferred as grace period winds up

Posted on October 16, 2020 by | 0 Comments
With the initial six-month mortgage holiday having run its course, Australia’s major lenders would have been banking on most customers resuming their repayments by now. But the latest dataset shows most have yet to return to normal. Data collected by the Australian Banking Association (ABA) found 270,000 home loans were still on hold as of October 11. Although that’s well below the peak of nearly 500,000 in June – or one in 10 mortgages nationally...

Continue Reading »

Property porkies: Record number of home loan applicants fudging the numbers

Posted on October 1, 2019 by | 0 Comments
The number of home loan applicants obtaining a mortgage after inflating their income and downplaying their living costs has jumped to record levels, according to research by global investment bank UBS. Thirty seven per cent of borrowers were not entirely honest in their mortgage applications, the bank’s anonymous survey of 903 Australians revealed – despite tougher lending standards imposed since the banking royal commission. The surge in so-called “liar loans” comes amid a rise in...

Continue Reading »

ASIC joins APRA in interest-only home loan crackdown

Posted on April 4, 2017 by | 0 Comments
The corporate watchdog has joined the banking regulator in cracking down on interest-only home loans, announcing targeted surveillance of lenders and mortgage brokers inappropriately spruiking the loans. The Australian Securities and Investments Commission (ASIC) also said eight lenders, including Commonwealth Bank, National Australia Bank and ANZ, will be forced to provide remediation, including possible refunds, to consumers who suffered financial difficulty as a result of shortcomings in past lending practices. [More]

Continue Reading »

The Bank of Mum and Dad is just generational self-interest to keep house prices high

Posted on April 4, 2017 by | 0 Comments
You know the remarkably high price of homes is now a top issue for our politicians, state and federal. But you may need reminding that house prices are an intergenerational issue. As a general rule, the younger generation buys its homes from an older generation, which means rising house prices constitute a transfer of wealth from younger to older generations. Unfortunately, this conflict of interests between the generations makes it unlikely the measures in the...

Continue Reading »

S&P says more borrowers falling behind for first time on mortgage repayments

Posted on April 4, 2017 by | 0 Comments
More borrowers are falling behind for the first time on their mortgage repayments, credit ratings agency Standard and Poor’s says. The proportion of owner-occupier home loans in arrears increased to 1.29 per cent in January, from 1.15 per cent in December, the agency says. Crackdown on investor loans Treasurer Scott Morrison believes it’s the willingness to loan money to investors coupled with watered down regulations that is negatively impacting household debt and housing prices. (Vision...

Continue Reading »

Size Matters When It Comes To Defaulting On A Home Loan

Posted on December 12, 2014 by | 1 Comment
An article by Clancy Yeates Bad housing loans will increase one day, and bankers say that many of the loans that will go bad are probably being written now, when interest rates are so low. Australian borrowers are a fortunate bunch. Unlike households overseas, they’ve managed to avoid the wave of painful mortgage defaults that have brought other economies to their knees. Indeed, local banks say the share of people falling behind on their mortgage...

Continue Reading »

Demand for home loans falls in August

Posted on October 14, 2013 by | 0 Comments
INVESTORS continued to elbow first-home buyers out of the property market in August, with the share of first time buyers taking out new home loans falling to its lowest level in almost 10 years. The number of housing loans fell almost 4 per cent to 49,900 from July to August, ending six straight months of rises, while the share of first-home buyers shrank from 14.7 per cent to 13.7 per, the lowest level since April...

Continue Reading »

Borrowers Don’t Understand How Lenders Look At Them

Posted on October 11, 2013 by | 0 Comments
This isn’t what you want to hear when you make the trip to your bank, cap in hand, to ask for money. However it’s often what’s said. The main reason is that many borrowers don’t understand how lenders look at you and how they assess your worthiness. BY JANE SLACK-SMITH It comes down to a two things:  1.You  2.What you’re buying   Let me deal with the first component. Without getting over the initial hurdle...

Continue Reading »

How do successful investors research the market?

Posted on September 21, 2013 by | 0 Comments
Residex believes there are at least 5,000+ suburbs in Australia that you should potentially consider when buying a house or a unit as an investment. That may sound daunting, but it is easy to narrow down the list by following a few simple rules. 1. Think about the long-term Magazines, newspapers and online articles or blogs about investment are a great place to start your research as they offer some useful tips and insights on...

Continue Reading »

What is a property bubble anyway?

Posted on September 21, 2013 by | 0 Comments
The Australian property bubble is speculation that real estate prices in Australia may (currently) be overvalued. This may be a real estate bubble. The bubble has been driven mostly by housing within Australia becoming investment tools instead of necessities. This was driven by the powerful real estate lobby, who heavily lobbied Paul Keating, John Howard and multiple other Australian prime ministers. Some experts, including Treasury officials,[1] believe the Australian property market is a significant bubble. It is arguably the biggest property bubble in...

Continue Reading »