'Responsible' lending laws to be axed

My point is when we open up for businesses, migrants and tourists and priority seems always on wealthier people would drive up faster wouldnt it? even though we would treat all people equally

Properties go up when people can pay more than the others and that's because they have wealth, good paying jobs or needs

 

My point is, we probably won't open up until there is a vaccine. Not just here, but there ( by "there" I mean - where they are visiting from or migrating from ) and I mean a vaccine that has been distributed to all , not just the lucky few.... otherwise the risk of contagion remains too high.

And even if that happens..... that ignores the HUGE damage we know exists but we haven't actually fully felt yet because of all the safety nets ... as the safety nets are removed.

Anyway... we digress. The responsible lending stuff is the topic. I don't think it's prudent to assume it will kick anything off until we see the real details of the legislation.

 

Honestly I don't have the attention span to read through the legislation. I should try it next time I have trouble getting to sleep. I tend to read the cliff notes and updates from various sources. Combine that with the compliance assistance we pay for and I think it's okay on that front.

Overall I think we'll see some improvements to serviceability but the biggest change will be lenders simply being more willing to lend. Longer term there will likely be continuous adjustments. Nothing major at any given step, but a steady climb over a few years to make things easier.

Keep in mind APRA will still oversee the ADIs and they will remain very risk adverse. The biggest change would likely come from the non banks. Even Pepper & Liberty's are a shadow of what they were a few years ago, these are the ones that will see the biggest improvements.

As an average affect to investors, it will probably mean that Joe Citizen will be able to build a modest portfolio with reasonable lenders. Something like their own home and an extra investment property. From there they'll be able to take steps into the non banks and private funders where they'll be able to go a lot further they plan and execute well. There'll be more competition in that space which will make it more cost effective with more options as well.

Finance strategy will be as important as ever, but there will be more options available for us to offer.

 

If escalated and agreeable by both sides, what's the fastest possible time frame something like this might take to roll out? If I'm looking to buy in the next 6-9 months, do I have anything to worry about? How soon can I expect to see a sudden influx of competing buyers?

 

I doubt there'll be anything sudden about it and it will likely be about 12 months before we really see the affects of this (assuming it is rolled out in April).

 

I work in the industry, trust me, international tourism is dead for years to come.

 

Well all I can say is, if/when I get the vaccine, I'll be booking an international holiday. I'm sure there'll be many others overseas who'll do the same to beat the rush.

Provided all's well on the job front of course.

 

This has nothing to do with serviceability. The banks doing less checks on you does not give you extra income to service the loan.

 

Didn't take long for the consumer rights groups to come out against the changes.
https://www.watoday.com.au/business...sponsible-lending-repeal-20200925-p55z57.html

 

Sometimes you get the feeling that these "consumer" groups would prefer that financial institutions didn't exist, credit was not available to any individuals, and nobody owned property. We could all rent from benevolent not-for-profit landlords and die poor - not really my idea of what's in the consumer interest.

 

Keen to hear when tangible changes come out? I would love the following

assessment rates back to a 100-150bps margin on top of actual

ability to place commercial property in personal names and vice versa to owning resi property in company names

acceptable security policy to be relaxed ie 5xunits in one line and still be resi loan

funny i had a couple clients call me yesterday and was expecting instant changes to our policy

 

I wonder whether we will now see more low doc lenders with competitive rates come into the market place.

For example RAMS loc doc has since gone, this was a brilliant product, I used this a number of times, great construction loans

Hope something like this comes back?????

 

You would think low doc loans will come back with a vengeance.

 

Up to the Govt to let the tourists in as testing and tracing are already working so far. Didnt they already start planning on the students back in?

 

Agreed - the "consumer rights" brigade are usually meddling nanny-statists who want to ensure that idiots never have to be held accountable or responsible for their own poor decisions.

 

what do you mean by "in one line" ?

 

I had a low doc reduce rate today RHG, terrible loan, got stuck with this one
Lets see what happens with non conforming lenders

 

next to each other