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, however, have the regulators gone too far, and will these actions have a flow-on effect for future economic growth?
Understand your individual position by speaking to a professional today.
https://stratgroup.com.au/wp-content/uploads/2017/03/SIG-WEB-LOGO.png00adminhttps://stratgroup.com.au/wp-content/uploads/2017/03/SIG-WEB-LOGO.pngadmin2018-05-16 02:44:292018-05-16 03:07:02What will be the economic effect of the Banking Royal Commission?
A key component lenders use when determining whether you are approved for a loan and how much you can borrow is your credit report, which sets out your previous credit applications and any defaults on your payments
Australia is currently moving to a new system of credit reporting that will help reward people who pay off their debts on time.
Following industry-wide changes, your credit report will soon show a much more comprehensive picture of your credit health and your ability to pay your debts.
Consumers who have been diligent in making their repayments on time may be able to borrow more money and at a lower interest rate than before.
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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 standards for interest-only were less strict.
If you have an Interest Only loan due for review it’s time to seek professional advice regarding your options.
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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 he expects rates to remain at current levels well into 2020.
Stability from the RBA doesn’t always translate into stability for borrowers as many have already faced rising mortgage costs during the last 12 months, especially those with investment and interest-only loans.
Now’s the time to take stock and review your individual financial position.
https://stratgroup.com.au/wp-content/uploads/2017/03/SIG-WEB-LOGO.png00adminhttps://stratgroup.com.au/wp-content/uploads/2017/03/SIG-WEB-LOGO.pngadmin2018-04-16 23:30:342018-04-16 23:31:52How prepared are you for your property purchase?
Eighteen per cent of Australian bidders have failed to get pre-approved finance prior to attending an auction, a new study has revealed.
According to a recent YouGov Galaxy poll, nearly one in five adults in Australia failed to secure finance before buying at auction.
Given it takes time to seek and be granted pre-approval it is important to seek professional advice as early as possible.
Buyers need to determine how much they can borrow and gain certainty that they are being realistic with their expectations.
Pre-approval is an indication from a lender that they feel comfortable lending a set amount of money to a potential buyer. It puts the buyer ahead of the game and strengthens their position when negotiating a purchase.
https://stratgroup.com.au/wp-content/uploads/2017/03/SIG-WEB-LOGO.png00adminhttps://stratgroup.com.au/wp-content/uploads/2017/03/SIG-WEB-LOGO.pngadmin2018-04-10 06:40:292018-04-10 06:47:41How prepared are you for your property purchase?
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