More TIGHTENING (Westpac squeezes borrowers)

Discussion in 'Property Market Economics' started by DowntownBlock, 31st Aug, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. DowntownBlock

    DowntownBlock Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    483
    Location:
    Melbourne
    DowntownBlock, 31st Aug, 2017
    #1
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    1,658
    Location:
    Sydney
    The article is scaremongering.

    Much of the policies have been in place already and its just further clarification on how Westpac treats each income source and a lot of what they have been doing is making the Westpac and St George lending policies align which is the big thing that sucks. I really can't see the policy changes and the correlation with "regulatory" requirements.
     
    Shahin_Afarin, 31st Aug, 2017
    #2
  3. DowntownBlock

    DowntownBlock Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    483
    Location:
    Melbourne
    It had been 18 hours since the last property scaremongering article from Fairfax so i guess they had to come up with something :)
     
    DowntownBlock, 31st Aug, 2017
    #3
    alexm, Jess Peletier, Terry_w and 1 other person like this.
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,654
    Location:
    Gold Coast (Australia Wide)
    Rolf Latham, 31st Aug, 2017
    #4
  5. jamesk

    jamesk Member

    Joined:
    14th Aug, 2017
    Posts:
    7
    Location:
    Sydney
    Then you have articles like this - Westpac launches spring property offensive with 85 basis point rate cut

     
    jamesk, 31st Aug, 2017
    #5
    Dean Collins likes this.
  6. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,091
    Location:
    Adelaide, SA
    "tighening" = getting in line with the rest of lenders. This was known for months in any case and calculators leaked a fair while in advance of the changeover.

    Much ado about nothing.
     
    Corey Batt, 31st Aug, 2017
    #6
  7. teetotal

    teetotal Well-Known Member

    Joined:
    7th Nov, 2015
    Posts:
    736
    Location:
    Sydney
    So that people end up buying their subscriptions ;)
     
    teetotal, 31st Aug, 2017
    #7
  8. Phantom

    Phantom Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    2,054
    Location:
    Sydney
    This was a well known happening from a while back. The 'tightening' was planned for earlier on in the year (around April) but for some reason - they delayed it. Perhaps to take advantage of their servicing 'edge' for a few more months and mop up the 'can't service crew' that had nowhere else to go.
     
    Phantom, 31st Aug, 2017
    #8
  9. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,171
    Location:
    03 9877 3000
    It was probably delayed because the changes are fairly significant from a process perspective. The serviceability calculator is a complete re-write which they would have had to create from scratch. There would have been a lot of work done in their internal assessment software as well, then there's the quality control and bug fixing it needs to go through.
     
    Peter_Tersteeg, 31st Aug, 2017
    #9