Terry McCrann reaches for new lows today:
You gotta love APRA’s classic regulatory — “it’s actually up to each bank what margin it decides, except that it must be at least that 2.5 per cent”.
…if loan rates fall to 4 per cent in the next couple of months (thank you RBA), then the next borrower gets to be able to borrow if they can service 6.5 per cent.
…a lot of people will be prevented from buying a house because a gun-shy APRA feels it has to play Nanny. It does so lest some future Hayne-style RC blames it for under-regulating; and blames banks for making commercial decisions — some of which result in loan losses.
What, and wild west credit helps people buys homes? Entire generations aren’t priced out owing to crazy cheap money?
Were you at the Hayne Royal Commission, Tezza? You know, collapsed lending standards and charging dead people?
Did you miss the property bubble and current bust underway, mate?
Have you stopped to consider how RBA and APRA work together, or in this case, aren’t doing so? What impact this disjunction has on the entire entire economy, not just mortgages?
Have you noticed that there is a global trade and currency war underway? That Australia has played a terrible hand throughout?
The last thing Australia needs is lower lending standards. If housing needs support then cut interest rates. But keep lending standards tight to ensure most of the impact flows through the currency instead.
The RBA is the hammer, APRA the nail. Not the other way around.