Are banks lending during COVID-19?

All the same stuff as before ,“ internal restructuring , back log , some extra check, workload etc etc “

 

Tiny lender in the scheme of things, but Bank of Sydney have just sent this out.

 

CBA temporary restrictions out today.

 

It starts same as before bit by bit
Still in shock how people can’t just understand 2008 and see what next 6 months will be like

 

The banks are a joke. They talk a huge game in the media, but try refinance a 10% LVR place with them that’s retail on lease doc they’ll shut shop straight away now.

 

What restrictions can you share?

 

Sophie Elsworth on Twitter

Can't read the article

 

I think its important to further filter those not requiring LMI,
by their source of deposit, aka whether its from equity release or pure savings.
because if valuations drop equity release will be constrained.

@Terry_w what percentage of those requiring LMI does not have equity release as their source of deposit.

 

We generally find that only first home buyer types require LMI. I can't recall any others. But our typical client is someone with 3 to 4 properties with a lot of equity.

 

that's what I thought based on just 5% of ur client requiring LMI,

would it be wrong to presume a majority of those buyers with no equity release buffer or fhbs, especially in syd/melb require LMI?

 

First Home Buyers generally want to get in before having to save the 25% so most would require LMI I imagine or use a parental guarantee.

 

Pretty sure most people think this is going to be worse than 2008. But it is also a completely different mechanism, unprecedented, so no one really knows... but yes clearly it's going to be bad.

 

The frothy segment will take a decent hit and will remain capped for some years to come due to changed consumer behavior out of shock.

But the potential effect of FEDs unlimited bailouts can't be underestimated,
we are on cusp of the mother of all US stimulus via unlimited fiscals stimulus, Just that this time it will go to big bang infra redevelopment rather than meaningless corporate tax breaks,
The love of stimulus would be spread around via IMF/contracts, with enough crumbs thrown at everyone who matters to prevent Ponzi printing revolt
I see a commodity boom like never before in coming decade and by the end of this decade we will see a change in leadership with likes of NCM, BHP etc finding a place in top 10 of world index dethroning current giants.

Apart from PM, base metals, oil, uranium miners/producers,
in RE my money would be on Perth.

 

If thats how things go, Perth is going to be the place to be

 

Famous last words.

 

Honestly I would imagine it's investor stock that will take a drubbing. Mum and Dad investors will prob sour on it for years if the gov is legislating free rent.

 

Banks been told by APRA to hold more capital.
Dividends to be cut!