The changing guidelines of Home Loan qualification today

The changing guidelines of Home Loan qualification today

The latest APRA figures have found an increase in the flow of residential mortgages to non-major and foreign subsidiary banks, while loan applications to credit unions and the majors have fallen.

These sobering findings, to anyone holding big four bank shares, should come as no surprise to observers of the ever evolving responsible lending guidelines all authorised deposit-taking institutions are invoking to cool the investor market and limit interest only mortgages.

Rest assured these, primarily APRA, regulations are having the desired effect with loans to owner occupiers jumping 32.6 per cent in the year to September 2017 while loans to investors have fallen for the 3rd consecutive quarter.

But of greater concern is just how tough it is to qualify for a home loan Amid regulatory and market concern, banks are scrambling to make mortgage applications tougher, leaving brokers to pick up the pieces, writes MPA editor Sam Richardson

Morgan Brooks featured in November Docklands News

Morgan Brooks featured in November Docklands News

Personalised services for new and seasoned buyers alike

The Aulsebrook family have been operating its mortgage broking business, Morgan Brooks, since the 1980s and has recently relocated to Docklands. Being in the centre of the banking and finance hub, Morgan Brooks stands out with its personalised service, in-depth industry knowledge, experience and community involvement.

“With many lenders adapting digital technology, many of our competitors have moved to online applications supported by offshore call centres. Although that method may hold appeal to tech savvy borrowers there’s no substitute for experience, personalised 24/7 service and knowing what lenders “appetites” are at any point in the lending cycle,” Ashleigh Aulsebrook said.

First Home Buyer flow into market jumps to 15%

First Home Buyer flow into market jumps to 15%

Historically low interest rates combined with additional first home buyer incentives are helping more potential buyers get their foot onto the property ladder, new research has revealed.

Depreciation: Overrated or misunderstood?

Depreciation: Overrated or misunderstood?

The important role of depreciation in a successful portfolio-building strategy is widely misunderstood. In fact, some investors miss out on valuable financial benefits and this reduces the profitability of their investments.

I am often asked questions about the ‘right’ way to invest in property. In fact, one of the most common queries I field is: “Should I buy for cash flow or capital growth?”

Many investors fail to gain finance approval

Many investors fail to gain finance approval

Are you aware that property investors increasingly face stricter guidelines?

Discover how to overcome banking lending thresholds and download your own FREE PERSONALISED PROPERTY PROFILE to help you grow your investment profile.

Is China exiting Australian Housing?

Is China exiting Australian Housing?

Two articles in today’s AFR draw compelling arguments supporting efforts by regulators in both countries to slow Chinese investment in Australian property.

Chinese buyers, who make up about 80 per cent of all foreign property purchases in Australia, have grown wary after being hit by Beijing's tightened capital controls, local banks restricting lending and growing fears of an over-supply in the capital city apartment market.

Experiencing Mortgage Stress? You’re not alone

Experiencing Mortgage Stress? You’re not alone

A recent report by the Real Estate Institute of Australia (REIA) discovered average Australian’s are spending more than 31.7% of their family income on mortgage repayments, a fact I can attest to through the number of calls I’ve fielded this year from borrowers seeking help in lowering their repayments.

It’s no surprise Victoria tops the list with Sydney not far behind. 

RBA reveals it's go-slow plan on interest rates

RBA reveals it's go-slow plan on interest rates

Back in May 2013, when PIMCO (one of the world’s largest bond fund managers) first uttered the phrase "the new neutral", it was in relation to Australia's policy rate, the cash rate. At that time, we estimated the neutral policy rate – the level that neither stimulates growth nor slows it – to be about 3 per cent for Australia, and we have stood by that view. More than four years later, the Reserve Bank of Australia explicitly referenced 3.5 per cent as its estimate of the neutral cash rate in its meeting minutes released on July 18; board members also acknowledged significant uncertainty around this estimate.

Whether it's 3 per cent or 3.5 per cent, the clear takeaway from both of these estimates is that we should expect interest rates in Australia to be significantly lower going forward than in rate cycles before the global financial crisis.