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Investment crackdown confusing borrowers, broker head claims

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Australian Broker | 04 Aug 2015, 07:32 AM Agree 0
Moves by lenders to clamp down on investment are proving confusing to borrowers, according to one broker network head
  • Victoria Broker | 04 Aug 2015, 09:07 AM Agree 0
    Couldn't agree more, the end customer is the one suffering here both with being confused with goal posts changing daily and having what was once a good deal now turning into a rip off due to factors outside of their own control. Where is the MFAA and FBAA in all of this, shouldn't they be lobbying the Govt and applying pressure to APRA to look at the bigger picture together rather than allowing them to apply the bully tactics we are seeing of late. The banks need to protect their margins so slower volume plus higher rates = protecting profits which I understand. MFAA/FBAA, where are you in all of this....what are we paying you for?
  • Bob | 04 Aug 2015, 09:14 AM Agree 0
    Correct, ADI's confusing borrowers is indeed good for brokers.
  • Bottom line.... | 04 Aug 2015, 09:58 AM Agree 0
    I doubt its a "silver lining", as the broker would have initially written the deal that is waiting for settlement - just means they may have to find another lender & do it all over again.
    All APRA have achieved, is to cause doubt, confusion, & mostly distrust of the banking system, at a time when the government are desperate to try do the opposite.
    Consumer confidence was low before; now it's even lower.
    You don't regain confidence in the public, by constantly throwing out new rules at a whim - now it will take years to even get back to where we were.
  • Broker | 04 Aug 2015, 10:03 AM Agree 0
    Consumers are simply being ripped off by the banks once again , not too much confusion in my eyes.
  • SEQ Broker | 04 Aug 2015, 10:53 AM Agree 0
    APRA has fired an arrow at a problem (Sydney House prices) and hit themselves squarely in the back of the head. The only people I can see affected is mum and dad investors who likely couldnt afford investments in Sydney anyhow. They couldnt hit a bullet with the broad side of a barn! I would be very surprised if the MFAA or FBAA were even asked on a method to handle the Sydney (they call it a problem, I call it a market doing what markets do) issue. FAIL APRA.
  • Papery | 04 Aug 2015, 11:02 AM Agree 0
    @SEQ the visual of being hit in the back of the head by your own arrow!!

    I get why the changes are being introduced & somewhat support the changes, BUT I take a strong agreivance with existing borrowers now being targeted with interest rates hikes. Im sure well see more public outcry once the increases hit clients bank statements.
  • BROKER WA | 04 Aug 2015, 04:38 PM Agree 0
    Non banks have not put up their rates for investor loans .They offer excellent pricing .
    With all the extra features (100% off set account 10yrs I/O ) Market changing back to pre GFC were non banks will start gaining back the market share .
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