Entries by admin

Big Banks Royal Commission Jitters

Australia’s big four banks continue to manage multiple challenges including falling house prices, a regulatory backlash sparked by the royal commission, and higher funding costs. A further challenge is that international funding costs have been creeping up in recent months – a trend likely to cost banks hundreds of millions if they are not passed […]

Property Market Update

The Australian property market is a restless one that can see things heat up and cool down in a matter of months, and with everyone trying to get a slice of a property market worth $7.5 trillion it pays to keep up to date. Whether you are a first-time property owner, or you own multiple […]

The Interest Rate Dilemma

The Reserve Bank has left the official cash rate on hold at its fifth meeting of the year, marking a record 22 months without a change. RBA Governor Philip Lowe said housing credit growth had slowed over the past year, especially to investors. “APRA’s supervisory measures and tighter credit standards have been helpful in containing […]

Bank limitations create opportunities for non-bank lenders

Since the GFC, bank capital levels and the number of bank regulations have skyrocketed. The unquestionable thrust of Basel III has been for banks to massively increase capital, reduce leverage, limit risk-taking behaviour, and adhere to a far more stringent set of banking regulations. The fallout from the Royal Commission will undoubtedly see a further […]

The Financial Landscape Has Changed Forever

It is important to understand how much you’re able to borrow prior to committing to any financial transaction. With the recent evolution of the lending landscape don’t make the mistake of assuming you will automatically obtain finance. Seek professional advice regarding loan structure and strategy at the outset. Changes by the Banks in relation to […]

What will be the economic effect of the Banking Royal Commission?

We are already seeing the impact with individuals and company’s ability to access Bank loans becoming extremely difficult. With the loan approval process requiring applicants to evidence the ability to service their borrowings at twice the actual interest rate, have the recent regulatory changes created a barrier for genuine borrowers. Prudent lending principles are required, […]

Will you be affected by The Hayne Royal Commission?

Lenders have been tightening their lending controls and interest-only rates in response to regulatory pressure to lower record levels of household debt and boost prudential standards. Ratings’ agency Standard and Poor’s is warning owner-occupiers are more likely than investors to struggle with the transition to principal and interest repayments, particularly for loans underwritten before 2015 when lending […]

Interest Rates – What will 2018 & 2019 bring?

Most economists are forecasting that the Reserve Bank of Australia (RBA) will probably only make one rate rise (+25bp) to the cash rate by late 2018 while a smaller group of analysts expect interest rates to remain on hold well into 2019. Westpac’s chief economist Bill Evans has even gone as far as saying that […]

How prepared are you for your property purchase?

A combination of factors are behind the movement in the Sydney property market, including: Investors and those looking for interest-only loans finding it more difficult to get finance, as banks have tightened their lending criteria due to pressure from regulators, Tougher restrictions being imposed on foreign buyers by the government, Rising levels of housing supply, […]