Credit crunch: At auction “people just stood there looking about”

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The AFR has gone full blown bear:

…buyers without deposits of between 25 to 35 per cent are being squeezed out of the market by the tougher lending conditions, agents claim.

…Borrowers with pre-arranged credit limits are also being reviewed by lenders before a deal is settled and lending limits being lowered, following tougher analysis of their debt levels and capacity to repay…Loan approvals for many lenders have blown out from days to weeks as lenders’ demand more information about borrowers’ income and spending, particularly their capacity to service the loan for the entire term.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.