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ASIC announces "targeted" surveillance of brokers

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Australian Broker | 03 Apr 2017, 09:40 AM Agree 0
The measures will ensure that lenders and mortgage brokers are recommending 'appropriate' volumes of interest-only loans
  • chrisC | 03 Apr 2017, 09:59 AM Agree 0
    Here comes the BIG STICK guys but if we have been doing it all along (rate differential or not) ........ no worries.
  • Clarke Kent | 03 Apr 2017, 10:01 AM Agree 0
    When do borrowers take ownership of their own decisions?
  • Broker | 03 Apr 2017, 10:16 AM Agree 0
    ASIC , jumping at shadows once again.
  • the other mack | 03 Apr 2017, 05:48 PM Agree 0
    Bugger off ASIC / APRA. IO is still cheaper on a cash flow basis which suits a lot of people! Not your business.

    There will be a push back once the public realise how far they are going with their socialist agenda.
  • GregR | 09 Apr 2017, 08:40 AM Agree 0
    I just find it ludicrous that bureaucrats presume to have the knowledge to impose decisions to 'protect' consumers where all that is achieved is to enable banks to increase profits via higher interest rates. On one hand they claim that loans need to meet consumers needs but they have determined that it should be P&I loans. If they never meet the consumer, how can they make that broad ascertain? By restricting supply, economics 101, price goes up and who benefits - lenders.
    What evidence is there to justify charging higher interest rates for IO loans? In fact, what evidence is there to charge higher interest rates for investment lending? I am sure the lenders will lose some money on the mining towns but they only have to blame themselves for that one.
    As to having to enquire as to detailed living expenses, do they really think most consumers know the breakdown of what they spend on a day to day basis? The most that consumers know is what they can save from pay to pay and the rest simply goes. Obviously there are a minority that do closely monitor what they spend but my experience is that most do not. Once they take a mortgage, they then adjust their lifestyles accordingly.
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