Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Keep calm, borrowers are fine, says broker

Notify me of new replies via email
Australian Broker | 19 Jun 2015, 08:24 AM Agree 0
Despite media reports about concerning savings habits and increasing household debt, one mortgage broker says it is all just hype and borrowers are well-placed to handle rate hikes
  • Regional Broker | 19 Jun 2015, 08:43 AM Agree 0
    Very good comments , agree completely.
  • Robert B | 19 Jun 2015, 09:11 AM Agree 0
    Bravo, Totally agree.
  • Michael Kent | 19 Jun 2015, 09:13 AM Agree 0
    I disagree!

    Yes all lenders test applicants at a higher rate BUT servicing does not take into consideration an applicant losing their job or having sudden medical bills or various other changes in lifestyle.

    Plus the fact "loan massaging" is rampant. I am amazed at the amount of brokers out there willing to fudge figures to make servicing work.

    Saying applicants have 2 kids when they know they have 4, putting car loan repayments at $400pm instead of $800pm, credit card limits at $10k when they are $30k.

    I had a client recently ask me why the maximum I could get her was $350k when another broker told her if he didn't tell the bank about her 2 kids or her car loan he could get her $650k which is what she wanted.

    With any decent home in Sydney being outrageously expensive and young couples borrowing $700k+ any slight increase in rates will put enormous strain on that couple.

    $700k at 4.5% = $3,546.80 per month
    $700k at 6.5% = $4,424.48 per month

    All of a sudden that young couple has to find an extra $878 per month.
  • MCC | 19 Jun 2015, 09:15 AM Agree 0
    The rate of technology change is highlighting the stripping of jobs & whilst the comments in this article reflect a current satisfactory position in borrowers financial stability,the casualization of the workforce over the last 30 years, + future concerns around underemployment, means the lending landscape & stability of the borrowers is about to change dramatically!
  • Macarthur Broker | 19 Jun 2015, 09:26 AM Agree 0
    I agree with Leon. In fact I have noticed the quality of my clients has increased dramatically as there is more interest in the market.
  • SEQ Broker | 19 Jun 2015, 09:44 AM Agree 0
    Whom Ever is not accurately advising on liabilities will not last long in the industry. Surely one of those clients will fail and the question will be asked... How did you get this loan? Does $400 per month really make sense when there is a new Audi in the driveway? Open your eyes and use sense, ask the question.
Post a reply