141Lack of borrower understanding of IO terms ‘concerning’: UBS
- The lack of borrower understanding of interest-only loan terms, especially among owner-occupier households, is “concerning”, a global investment bank has warned. According to UBS’ Australian Banking ...
- 21 September 2018 in News
142CBA withdraws from SMSF lending
- ... include AMP withdrawing its interest-only terms on its SuperEdge SMSF home loan product last month “in response to recent market changes” and as part of the bank’s focus on “managing its portfolio responsibly ...
- 18 September 2018 in News
143Major banks to face multiple court proceedings
- ... Expenditure Measure, coupled with a softening property market and the “maturity of interest-only loans” could “leave thousands in financial ruin, staring at the prospect of bankruptcy”. In a statement ...
- 18 September 2018 in News
144Foreign-backed lender to target ‘orphaned’ borrowers
- ... home loan at a maximum 80 per cent loan-to-value ratio (LVR), on a principal and interest (P&I) or interest-only (IO) basis. The lender also offers an introductory variable rate for a non-resident P&I ...
- 14 September 2018 in News
145Investor and IO loan approvals tumble
- The full brunt of APRA’s macro-prudential caps has been realised in its latest banking statistics, with the regulator reporting drops in investor and interest-only loan approvals of $16.6 billion and $74.4 ...
- 14 September 2018 in News
146RC and PC scrutiny could undermine banks’ pricing power
- ... Risks to asset quality to “remain high” Moody’s has also reported that it expects “problem mortgages” to rise as borrowers transition from paying interest-only to principal and interest, and added ...
- 13 September 2018 in News
147Arrears fall, rate rises unlikely to affect credit quality: Fitch
- ... 18.6 per cent. However, Fitch stated that prepayment rates remained low in the year to 2Q18, off the back of tighter underwriting standards and macro-prudential caps on investor and interest-only lending. ...
- 12 September 2018 in News
148Rate hikes to ‘exacerbate’ housing downturn
- ... now well embedded in a downturn.” Mr Kusher continued: “Tighter credit conditions, higher mortgage rates for investors and interest-only borrowers and reduced affordability have already led to the falls ...
- 10 September 2018 in News
149More majors pull interest rate trigger
- ... the standard variable home loan rate will increase to 5.37 per cent per annum for customers with principal and interest repayments, and 5.92 per cent per annum for customers with interest-only repayments. For ...
- 06 September 2018 in News
150Major bank agrees to pay $35m for NCCP breaches
- ... used a benchmark (the Household Expenditure Measure); and failed to use the higher repayments at the end of the interest-only period when assessing a consumer’s capacity to repay the loan, for home loans ...
- 04 September 2018 in News
151Annual housing credit growth slowest since 2013
- ... harder for investment loans and interest-only loans, and so investors have cooled off the market to some degree, which was the regulator’s intention because the market had gone up so much for the last ...
- 03 September 2018 in News
152Arrears spike to continue as rates rise: S&P
- ... to growth in interest-only lending over recent years, refinancing pressures for some borrowers and the growth in loan offset facilities. S&P added that a slowing in prepayment rates could precipitate ...
- 31 August 2018 in News
153Westpac hikes home loan rates
- ... variable home loan rate for owner-occupiers will increase to 5.97 per cent per annum for customers with interest-only repayments Standard variable residential investment property loan rate will increase ...
- 29 August 2018 in News
154Seasonal change to spark lending ‘uplift’ in ‘buyer’s market’
- ... lenders, lending to investors and owner-occupiers will continue to remain subdued.” Mr Bartolo added: “The 30 per cent cap remains in place for interest-only loans, a product typically used by investors. ...
- 28 August 2018 in News
155AMP drops rates as competition intensifies
- ... from 3.68 per cent, with investor home loans starting from 4.04 per cent and interest-only home loans starting from 4.66 per cent. Over the past month, several lenders — including Commonwealth Bank, ...
- 24 August 2018 in News
156Bank bolsters mortgage portfolio by $2.8bn
- ... with Suncorp reporting investor lending growth of 4 per cent in FY18, well below APRA’s former 10 per cent cap. Additionally, the portion of interest-only loans fell by 6 per cent in FY18, from 28 ...
- 10 August 2018 in News
157CBA confident of lending rebound following $4bn drop
- ... while the share of investor loans settled by the bank declined from 33 per cent to 29 per cent. Interest-only lending fell sharply over FY18, dropping by 18 per cent from 41 per cent of new loans settled ...
- 09 August 2018 in News
158Mortgage delinquencies to rise as IO loans convert to P&I
- Moody’s Investors Service has warned that Australian mortgage delinquencies will rise over the next few years as a record number of interest-only loans are scheduled to convert to principal and interest ...
- 06 August 2018 in News
159Can the housing market and the broader economy cope with higher mortgage rates?
- ... and interest-only borrowers that are being charged higher mortgage rate premiums. It is important to note that owner occupiers remain the biggest source of mortgage demand, accounting for around two ...
- 06 August 2018 in Blogs
160AMP withdraws interest-only SMSF loan ...
- AMP Bank has announced changes to its SMSF loan product, including the withdrawal of its interest-only package and interest rate increases on other variants. AMP Bank has announced that it will no ...
- 03 August 2018 in News