Banks take hard lending line
By
BN
|
22/07/2010 5:50:00 AM
|
0
comments
Discounts on standard variable packaged mortgage rates are being cut back at the same time as banks choose more carefully who they lend to, according to AFG's Mark Hewitt.
Speaking with the Austrlaian Financial Review, Hewitt, general manager of Australian Ffinance Group, said the 0.7% discount often offered to customers as part of a packaged, professional pack remained available, but the parameters for recieving this boost had narrowed.
Professional packs were offered to everyone borrowing over $500,000 prior to the financial crisis, an improvement on previous bank policies, where professional qualifications were required.
However, Hewitt told the AFR customers of most banks now need to borrow at least $700,000 to obtain the same discount, while those borrowing less than that had to settle for a 0.6% discount on their rate.
Combined with a tighter focus on the type of customers they will lend to, Hewitt said the situation made it "extremely difficult for people to access credit right now".
Latest Comments