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Investor tightening will strengthen our banks, says ratings agency

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Australian Broker | 30 Jul 2015, 08:00 AM Agree 0
The major banks’ move to reprice their residential investor loans and curb investor lending is credit positive, according to a global ratings agency
  • Regional Broker | 30 Jul 2015, 09:12 AM Agree 0
    Really what else are these people going to say , increased margins always will bring a positive response , it is not rocket science Moodys!
  • country broker | 30 Jul 2015, 09:36 AM Agree 0
    how is increasing the interest rate on existing loans slowing down investment lending...these customers already have purchased....this is just revenue raising by the banks - this is just pure profit because the reserve bank hasn't increased the cash rate for investment lending.
  • Aleks | 30 Jul 2015, 09:45 AM Agree 0
    Was there a problem with our banks strength in the first place?
  • Bottom Line.... | 30 Jul 2015, 10:10 AM Agree 0
    Aren't Moody's the ones who got all the ratings wrong in the first place; which aided the crash in the US in 2007.
    Yet we're taking advice from them?\
    "interest-only loans are more exposed to rising interest rates than principal-and-interest loans" - would have thought both loans were affected equally.
    Either way they have bashed Australia to try and fix Sydney - all the time ignoring (political correctness) the large number of overseas cash buyers, who are offering far more than the reserve price.
    But we cant upset other countries, so lets bash the Australian investors - even in unaffected states.
  • Mark | 30 Jul 2015, 11:00 AM Agree 0
    What happens if it reduces the value of properties by 10%, how strong will they be then?
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