How high will the RBA’s cash rate get and how quickly? That’s one of the questions at the forefront of many people in the property development’s minds. With five consecutive rate hikes totalling 225bps, the RBA has moved at an unprecedented and record pace to combat spiralling inflation. RBA governor, Philip Lowe, now expects inflation […]
Research undertaken by Ashurst has confirmed that non-bank lenders are reducing their LVRs, which have fallen from 72% in 2017 to 65%.Ken Nguyen of Ashurst states, “What we’re seeing in the last 18 to 24 months is lot of the non-banks move in a much more institutional direction, tying themselves to institutional money from…
APRA Guideline ConfirmedFurther to the APRA Media release on 21 May 2019, it has now been confirmed that its “guidance on residential mortgage lending will no longer expect them [ADIs] to assess home loan applications using a minimum interest rate of at least 7 per cent… Instead, ADIs will be able to review and set their own minimum interest rate floor for use in serviceability assessments and utilised…
APRA proposes amending guidance on mortgage lending
The Australian Prudential Regulatory Authority (APRA) has announced that the 7% sensitised interest rate for new home loans is under review. APRA introduced the serviceability requirement for Authorised Deposit Taking Institutions (ADIs) in December 2014 requiring that all new home loans…
With the negative media surrounding property prices, we analyse if now is a good time to invest in first mortgage real estate funds. Moody’s Analytics expects property prices to fall by 11.4% in Melbourne and 9.3% in Sydney throughout 2019. However, a slow recovery is expected in 2020, further improving in 2021. The current fall…