1300’s John Kolenda is blaming the soft property market for increased difficulty in accessing equity.
He claimed post-GFC conditions – namely, less competition between banks, a soft market and tighter lending practices – dealt a blow to both equity and accessing a loan altogether.
“We are all aware of the effect of the soft property market on investors but homeowners also suffer when the market is weak even if they are not planning to sell,” Mr Kolenda said.
“In the past, thousands of Australians have used their home equity to do renovations, consolidate personal loans and other debts or deal with financial emergencies,” he said.
He added the “well-worn path of getting a home re-valued and then using that to get a credit line from the bank was much harder to access [these days].”