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APRA boss defends investment clampdown

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Australian Broker | 10 Aug 2015, 08:30 AM Agree 0
APRA has defended recent efforts to slow down lending to investors in front of the federal government inquiry into home ownership
  • Really? | 10 Aug 2015, 09:26 AM Agree 0
    The only Banks to have a system that survives 2007 - the biggest financial crisis the world has seen.
    So the motto is...."if you have a winning it".
  • simon | 10 Aug 2015, 09:26 AM Agree 0
    OMG. Glad I read the terms and conditions of responding before writing this as I believe the gentleman that heads up the less than knowledgeable regulatory body may have his cranium in a position where little light would appear!
    Certainly no Byers remorse (pun intended)
    Seriously,"its implementation is still 11 months away"? Perhaps on planet APRA, but on earth rates have just increased for many existing investors so the pain has already started.
    Another comment "it would be interesting to see" OMG again, your playing with peoples lives and it will be interesting to see? How about doing n impact study beforehand.
    And then "interest rates will not always be as low..." That's right..because you just raised them.
    Focus your attention on overseas investor restrictions, and if you think this isn't a Sydney / Melbourne led issue sack all your advisors or perhaps do the right thing and sack yourself.
    For the avoidance of doubt I think APRA have it wrong and need to be challenged.
  • John | 10 Aug 2015, 09:27 AM Agree 0
    That is fine to defend the clamp down on investment loans? Does he defend price rorting?
  • Brad | 10 Aug 2015, 09:43 AM Agree 0
    Hold your head in shame Wayne Byers. You are doing your best to burst a bubble that never existed.
  • Stephen | 10 Aug 2015, 10:00 AM Agree 0
    The APRA changes allow for the biggest financial rort in Australia's financial history. The current increase in investment interest rates has just handed the majors an additional $1.5 billion in profits. People previously approved an investment loan have now been rejected and people risk losing their deposit and creating financial stress. Finally, many investors may struggle to refinance existing loans due to new serviceability requirements, opening them to being taken advantage of with higher interest rates. This is not the right way to reduce credit risk, especially on loans already settled. Heads should roll at APRA.
  • Regional Broker | 10 Aug 2015, 10:07 AM Agree 0
    Is this Public Servant ( that is all he is) in touch with the real world , if this bloke is advising the treasurer and Minister for Finance ( the Cigar Boys!) We are all in trouble !!!
  • sunil Mishra | 10 Aug 2015, 11:12 AM Agree 0
    The repercussion of APRAA intervention is many fold. If interest rate goes up guess who will pay - The Tennants. So the poor the Govt is trying to assist will be hit by rent increases. The Banks are laughing as an additional profit Margin is always good with no effort. They will blame APRA. Our Banks are safest in the world due to many factors brought in the Banking industry due to various regulations.
  • Joe Siragusa | 10 Aug 2015, 11:22 AM Agree 0
    Australia's loose Foreign Investment policy and lack of enforcement of regulations is one of the reasons why the supply / demand of housing in Australia is out of balance. A solution may be the Foreign buyers who have not adhered to the regulations should forfeit the property and their equity. Quick fix and sends a strong message to those who facilitate helping foreign buyers flout the laws.
  • marty | 10 Aug 2015, 07:23 PM Agree 0
    Wayne just assumes (like everyone else) rates will go up and he frames his policies accordingly. I am sorry but common sense is not a good way to make policy. The long term IR trend world wide is down down down with ever smaller peaks. We are headed to 0% pa. The new normal is not 7.5% pa my friend Wayne, rates will not get to 7.5% for the foreseeable future. The construction boom will fade with no buyers able to qualify and nervous banks. Thanks Wayne for sending the whole country in a death spiral when stimulus of any kind is needed. That is common sense you dill.
  • Tony WA | 10 Aug 2015, 09:14 PM Agree 0
    APRA'S approach is very much a blanket/bandaid approach which is very much a government Captain's Choice approach where they have failed to consult with one of the major players on the coalface of residential lenders being the brokering arm and their major bodies such as the MFAA where over 50% of the borrowing occurs. This is short sighted and a total lack of respect by APRA and Wayne Byers.
    Does Wayne know that Australia does not just consist of Melbourne and Sydney. His equation and statement of commonsense don't add up. Some of the other capital cities require urgent stimulation in the residential lending/building construction. Also the are encouraging lenders to go against the basic principles of paying of their owner occupied property first instead going against investment advice reducing the principle on their investment property."Dumb"
    The government wishes for people to create their own retirement nest egg with the aging population and to reduce the burden on Government pensions. At the same time they are continually putting spokes in the wheel in relation to superannuation changes and residential investment lending. Are APRA hoping to divert the average Mum and Dad into share investment and term deposits to create their wealth nest egg for later years??
    I believe APRA have got it wrong in the way they have gone about de-fueling the investment market in certain areas to supposedly build up bank/lenders strength position. They have in certain areas created an adverse outcome for the mid to long term and let down the general public failing to consult the major players, aggregator's and their industry bodies.
  • Papery | 11 Aug 2015, 02:20 AM Agree 0
    Lets see how the LMI providers react.....reduced LVRS, reduced new applications to purchase & refinances.
  • Anil Jindal | 11 Aug 2015, 07:59 AM Agree 0
    Wayne Byers has given the banks a perfect excuse to raise the interest rate on investment loans and to further increase their profits. Banks have been very quick in raising the interest rate on investment loans and have raised not only the variable but also the fixed and have slugged not only the new borrowers but also the existing customers. It's a shame and head should roll at APRA.
  • SEQ Broker | 11 Aug 2015, 08:28 AM Agree 0
    12 Months away. What a noodle brain! Hey guys, lets all send this bloke every email we get from every lender outlining any investment rate increase, LVR lowering or anything that may affect mum and dad investors or even home buyers for that matter that comes from these measures.
    He may end up so busy reading our emails that he will forget to financially annhialate the poor... oh sorry he already did.
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