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Bank lending standards being 'stretched': APRA

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Australian Broker | 23 Oct 2014, 06:35 AM Agree 0
The competitiveness in the mortgage sector is stretching lending standards, according to Australia’s financial regulator
  • Brado | 23 Oct 2014, 09:22 AM Agree 0
    If anything lending standards are tighter. Less lenders are doing 95% LVR's. More of them are looking for under 80% lends with pricing discounts in that area... these APRA people are alarmists... nothing more.
  • marty | 23 Oct 2014, 02:44 PM Agree 0
    I agree LVR wise lending is tighter than it's ever been in my 12 years. Low docs ..nah not that. Perhaps they are most worried about servicing models but with living cost declarations required by most lenders I think it's all pretty clean.
  • Andrew Edwards | 24 Oct 2014, 08:58 AM Agree 0
    I don't think it is the banks tightening up it is the mortgage insurers.

    Some of the reasons I have had for declines lately are ridiculous i.e. the house is within 50 metres of high tension power lines!

    If a client needs a 95% loan I am always nervous but in this expensive world and with the outrageous price of houses it is almost impossible for couples or individuals to save a 20% deposit.
  • marty | 24 Oct 2014, 12:31 PM Agree 0
    @ have had for declines lately are ridiculous i.e. the house is within 50 metres of high tension power lines!

    That one has been around for a long time.
  • Damo | 24 Oct 2014, 05:55 PM Agree 0
    @ Andrew That is a QBE LMI thing, they also hate <100m to a train line.
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