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APRA on alert as owner-occupied competition heats up

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Australian Broker | 23 Oct 2015, 07:38 AM Agree 0
Banking regulator APRA says it will remain “very alert” to decaying credit standards as competition for owner-occupied home loans heats up
  • CJ | 23 Oct 2015, 08:56 AM Agree 0
    Pull your head in APRA and stop making so many Knee-Jerk reactions. It's getting beyond a joke.
  • GC | 23 Oct 2015, 09:09 AM Agree 0
    APRA should be on "high alert" over this issue. They have had a major hand in creating this problem. The system wasn't broken so why did APRA need to intervene?

    The market was doing what it usually does every 10 yrs and the RBA and APRA screwed it up by sticking their noses where it didn't belong. Price increases would have slowed as they always do when the market decides enough is enough. Now its heading for some serious trouble. Is APRA now going to tell the banks and us they are lending too much and reduce lending levels?

    If this keeps going they will create one of the biggest credit squeezes we have ever seen and then the inevitable recession will follow. And who will be responsible for screwing the economy that up until now has been working fine? APRA, ASIC and the RBA.
  • Regional Broker | 23 Oct 2015, 09:15 AM Agree 0
    OH so has this so called decline in credit standards, resulted in a huge blow-out in mortgage loan arrears, or increases in LMI claims? NO.
    APRA is just so self focused and they need to back up these claims (scaremongering) with solid facts for more than one credible source.
  • Brado | 23 Oct 2015, 09:33 AM Agree 0
    I know how they can fix it, tell the lenders to put up their interest rates, which will slow down people buying owner occupied properties... AND help the lenders make more money. Simple.
  • John | 23 Oct 2015, 09:41 AM Agree 0
    GC, that is what is happening APRA are telling the banks what to do and they are saying YES.

    APRA has created this problem, they now want to point the finger at everyone bar them.

    APRA need to seek advice from other not just internal. I would like to know what it is like to be right ALL the time APRA?
  • Broker | 23 Oct 2015, 09:43 AM Agree 0
    "Deteriorating credit standards" - what planet are they living on at APRA and which specific decaying credit standards are they referring to?

    All we seem to get from APRA these days is unsubstantiated and reckless scaremongering, they should to be gagged!
  • Papery | 23 Oct 2015, 10:42 AM Agree 0
    The cardigans are getting out of control and putting the market in straight jackets. You tell me who the crazies are?
  • marty | 23 Oct 2015, 11:55 AM Agree 0
    Now that APRA's / ASIC's changes have fully washed through the system they will soon realise they have killed the market stone dead which was the only thing keeping us out of recession.

    Well done Mr Byres you will be singularly responsible for the first recession in 20+ years. At least no investors will have over borrowed in the last few months. Idiots.
  • GC | 23 Oct 2015, 12:08 PM Agree 0
    John, I am well aware of the issue and am well aware they are "advising the banks". As far as I am concerned it more like collusion than advice.

    APRA are now looking at domestic lending and are acting like the BIG brother. They have actually stated they need to protect us from ourselves - hence the reason for their intervention. APRA & ASIC will do more damage than good if this is allowed to continue. The unintended consequences will be huge and will stall the economy. This is something Australia does NOT need at the moment.
  • Dave Robinson | 23 Oct 2015, 12:18 PM Agree 0
    This was purely a justification statement. We now have banks putting up rates to justify APRA's latest requirements. The RBA will now have to lower rates and this just means more profits for the banks. We have a slowing economy both here and OS, growth rates are constantly being lowered, China's growth is set to "slow down" to under 7%, a year ago this would have been seen as a recession now it's the norm. We are all in for some interesting times, the downside is that Mr Byres will never be held accountable for his actions and what it did. APRA is meant to help the public not just the banks. Let's all look back on this in a years time, we will have the time to do so as the property market and economy will have slowed to a trickle.

    I am out of the property market and everything is in cash.
  • Banker | 23 Oct 2015, 02:58 PM Agree 0
    APRA are simply trying to manipulate the market. It doesn't work with the share market and it wont work with the property market. APRA are basically just a bunch of credit dinosaurs having their way. But the rich don't have to worry, it's just the battlers. APRA are all for the wealth gap.

    We will all look back on this in a year or two and see it for what it is.
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