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ASIC regulations a 'sledgehammer,' REIA warns

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Australian Broker | 13 Apr 2017, 08:25 AM Agree 0
Further restrictions require a delicate approach to avoid knock on effects on renters and construction, the institute has said
  • DB | 13 Apr 2017, 09:25 AM Agree 0
    Great article, but do you think the Government, APRA and ASIC are going to listen?? NO of course not!
  • Uniquebdz | 18 Apr 2017, 09:05 AM Agree 0
    I absolutely agree there is definitely a place for some interest only loans. If you are purchasing a property and have another liability that finishes in a year or two, then a 2 year int only loan can be appropriate. Or you want to do some work on your new property again for the first year or two. I think that the biggest issue is the behavior of some who put everyone into 5 year without a genuine need or reason, or high LVR loans. It is also important that the risks and costs are clearly communicated to the customer and these discussions documented. That way if a file is reviewed by the regulator it can be clearly identified the reason why IO is needed and the customer understands the costs.
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