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Loan reclassification questioned in $51bn switch

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Australian Broker | 05 May 2017, 08:25 AM Agree 0
With 10% of all loans being moved from investor to owner occupier, concerns have been raised about the validity of these changes
  • Ed Ridge | 05 May 2017, 09:19 AM Agree 0
    I will come out and say what Mr North won't and that is there is no way any of those figures are anywhere near correct. OO v's Investor how would anyone know, the lender doesn't and that's who you are asking? How many people took out an OO loan only to rent out the property either straight away or later on? Who has an OO loan but uses AirBnB? Unless the borrower actually tells the lender, and then the lender has a system to note it (doubtful at best) then it's all just hot air. These discussions are a waste of time and the media is lapping it up and Mr Byers looks as though he is having an impact when he is not. The Australian housing market and the discussions around it are getting out of hand and I feel there is a big shake up coming, sooner rather than later. My fear is that the ball will start rolling and will get out of control as the truth comes to light. Buckle up the ride could prove bumby.
  • Cubeman | 08 May 2017, 09:19 AM Agree 0
    Some lenders have done it this way, but I think a fairer way would be to give borrowers a time frame to advise IF the property is O/O and or change from I/O to P&I without fee or penalty rather than the blanket approach that has been applied.
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