Three wooden figures are dwarfed by the size of a loan amount beside them

A vote on the federal government’s bill to change responsible lending laws could arrive as soon as this week

The federal government’s bill to wind back responsible lending laws received strong endorsement from the Senate last week when the Economics Legislation Committee tabled its report recommending that the bill be passed. Echoing the Morrison government’s rationale for introducing the bill, the official view of the committee includes a statement describing the “current credit protection[…]

Calculating mortgage repayments following a rise in the interest rate

Australia’s strengthening dollar could affect fixed-rate mortgage repayments sooner than expected

  In the RBA’s first monetary policy announcement for 2021, it was predicted that the conditions for a rise in the interest rate wouldn’t “be met until 2024 at the earliest”. This statement gave many potential homebuyers added confidence about how much they could afford in terms of mortgage repayments. However, as pointed out by[…]

APRA announces proposal to scrap inflated interest rate assessment for home borrowers

With many confident the RBA will be cutting interest rates at the upcoming June meeting, Australia’s banking regulator APRA (Australian Prudential Regulation Authority) has announced a proposal to scrap a rule requiring mortgage customers’ lending capacity to be assessed at an inflated interest rate. Introduced in 2014 as a measure to contain rising house prices[…]

Stricter Lending Criteria Affect Homebuyers and Home Sales

Houses for sale in Australia are now experiencing longer listing times now that banks have tightened their lending criteria for potential homebuyers. In Sydney alone, homes were taking 43 days on average to sell based on data from CoreLogic. Darwin had the slowest turnover with 93 days while properties in Hobart were selling the fastest.[…]