Are credit markets finally easing ?

Discussion in 'Loans & Mortgage Brokers' started by Harry30, 2nd Mar, 2018.

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  1. Harry30

    Harry30 Well-Known Member

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    Harry30, 2nd Mar, 2018
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  2. Harry30

    Harry30 Well-Known Member

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    Harry30, 2nd Mar, 2018
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  3. Blueskies

    Blueskies Well-Known Member

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    Definitely a change in the language of late.

    I assume when they say the IO premium to P&I is narrowing, that is for new customers only?
     
    Blueskies, 2nd Mar, 2018
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Semantics and PC language

    I see the APRA thing as

    One cant take back words spoken in anger.........

    ta
    rolf
     
    Rolf Latham, 2nd Mar, 2018
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  5. Redom

    Redom Mortgage Broker Business Plus Member

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    How credit policies wind back may depend on how much APRA knew about how credit standards were being applied in a low rate environment. If they knew about it all and let it happen, then that shows a willingness and comfort to allow credit to ramp up to fuel economic conditions. If it was just an oversight issue (which i think it was), than i don't think they'll just let lenders loosen credit standards again to ramp up credit growth. By all public comments in the past though, they've been pretty resilient in stating that credit standards can't be as loose as they were a few years ago.

    Nonetheless, other tools like pricing differentials etc can be used, but i don't know whether this will necessarily drive credit growth all that much in current market conditions.
     
    Redom, 3rd Mar, 2018
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