81APRA scraps interest-only cap ...
- The prudential regulator has announced that it will be removing its 30 per cent speed limit on interest-only lending from 1 January 2019. The Australian Prudential Regulation Authority (APRA) has ...
- 19 December 2018 in News
82ACCC’s investigative powers enhanced by funding boost
- ... on interest-only lending. [Related: ACCC accuses majors of ‘synchronised’ revenue grab] ...
- 18 December 2018 in News
83High LVR lending falls to ‘record low’
- The decline in the banks’ risk appetite has been highlighted by the latest statistics from APRA, with low-deposit, low-doc and interest-only lending falling sharply. The Australian Prudential Regulation ...
- 13 December 2018 in News
84ACCC accuses majors of ‘synchronised’ revenue grab
- APRA’s cap on interest-only lending served as a “convenient focal point” for the major banks to engage in “synchronised” mortgage pricing activity that undermined competition, the ACCC has said. In ...
- 12 December 2018 in News
85Risks of tighter lending flagged by economists
- ... in a declining market, it’s even more important for lenders to make sure borrowers can pay off their debts and avoid issuing interest-only loans. “While tighter lending rules will hasten the decline ...
- 06 December 2018 in News
86Burgeoning competition a risk to credit quality: S&P
- ... types of lending, including from self-managed super fund (SMSF), interest-only and investor borrowers, which she said is evidenced by the non-banks’ “less-seasoned’” portfolios. “I suppose one of the ...
- 29 November 2018 in News
87Digitisation of loan variations ‘more important than ever’
- ... interest-only to principal and interest repayments, moving from a fixed rate to a variable rate, the permanent pay down of a loan, or release of a loan guarantor. According to the NextGen.Net sale director, ...
- 27 November 2018 in News
88Industry at loggerheads over cause of housing slump
- ... Bank of Australia’s deputy governor, Guy Debelle, acknowledged that the prolonged effects of the Australian Prudential Regulation Authority’s macro-prudential caps on investor and interest-only lending ...
- 19 November 2018 in News
89APRA preparing for ‘unseasonable’ market ‘cold snap’
- ... standards and caps on investor and interest-only lending. The deputy governor said that he was concerned that “riskier borrowing’ would be the “accelerator”, not the cause, of a “negative shock” to the ...
- 16 November 2018 in News
90Government urged to limit ‘destructive’ APRA powers
- ... Mr Pressley said that he expects APRA’s macro-prudential curbs on investor and interest-only lending over the past few years to have broader implications on the Australian economy. “This will soon ...
- 15 November 2018 in News
91Consumer spending could help offset debt risks
- ... or no real equity in their home, up from 8 per cent 12 months prior. Consumer spending could also be impacted by the rollover of interest-only (IO) loans into principal and interest (P&I), which the ...
- 14 November 2018 in News
92Federal Court rejects Westpac $35m penalty
- ... 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 to owner-occupiers with an interest-only period. For example, ...
- 13 November 2018 in News
93KPMG issues warning on delinquent mortgages
- ... that high household leverage levels, higher lending rates, tightening credit conditions, the maturity of interest-only mortgages and continued high consumer confidence will drive an uptick in delinquencies ...
- 09 November 2018 in News
94Non-banks ‘chipping away’ at major bank share
- ... constraints on investor and interest-only loans. “These pressures are likely to increase further over the next year with the mandated introduction of open banking in July 2019 and a renewed focus on ...
- 07 November 2018 in News
95Major bank reports drop in mortgage applications
- ... 61 per cent of the portfolio (up from 50 per cent as at September 2017), with the group holding its proportion of new interest-only mortgages to less than 30 per cent of new flows (at 23 per cent of new ...
- 06 November 2018 in News
96Major bank CEO intent on reducing ‘churn’
- ... investors dropped from 42 per cent to 40.9 per cent. The proportion of interest-only loans also declined, falling from 29.8 per cent to 24.5 per cent. The results revealed that the proportion of home ...
- 02 November 2018 in News
97Household wealth could plummet by $700bn
- ... Morgan Stanley noted that central banks have been focusing on financial stability using macro-prudential measures, such as caps on investor and interest-only loan growth in Australia and limits on loan-to-value ...
- 02 November 2018 in News
98AMP Bank cuts fees for ‘simplicity’
- ... 20 October 2018, with existing customers of AMP SuperEdge loans to be prevented from switching to interest-only repayments, refinancing or extending their loan term after 10 November 2018. Similar moves ...
- 30 October 2018 in News
99New directors join AMP super boards
- ... moves were made by other lenders such as Westpac and Commonwealth Bank. The announcement followed AMP revealing in September that it would no longer be offering interest-only terms on new SuperEdge Loans. ...
- 18 October 2018 in News
100P&I switch could worsen senior debt stress
- ... DTI levels for individual borrowers. The helpline representative also confirmed that mortgagors had started to express concern about being switched from interest-only (IO) to principal and interest (P&I) ...
- 17 October 2018 in News