Cross securitise

Discussion in 'Loans & Mortgage Brokers' started by Frosty123, 12th Nov, 2015.

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  1. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
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    4,607
    Location:
    Sydney (Australia Wide)
    Thats true - as brokers we can't really map out exactly what may happen with individual lenders.

    For those that follow it closely, you can get a reasonable expectation of where the market is heading and what may happen over time (for example, APRA changes that were coming we're signalled well beforehand). Breaking it down to individual lender policy is far more difficult though, as there's less information for brokers to work with there. E.g. we can look into industry trends on I/O lending and regulators fears about it, but we don't have insight into Westpac's boardroom on how they may react to future changes. The last 12 months have been a pretty good indication of that.

    Noting that, when taking a strategic approach its worth considering how things may change and what level of flexibility you may need to react to those changes. This approach is likely to yield much more fruit than trying to estimate what may exactly change.

    Sharon's made some great points on this thread about the risks of fixed rates - often justified around the lack of flexibility it gives you to respond to policy changes.

    Cheers,
    Redom
     
    Sackie likes this.