Via ANZ at the AFR today:
“We have revised our forecasts and now expect prices to bottom out in coming months and rise modestly through to the end of 2019, before gaining around 3 per cent in 2020,” ANZ said.
…banks now get to use the set their own “floor” rate to test a borrower’s capacity against and must then use a buffer rate of at least 2.5 per cent above the interest rate for whatever loan the applicant is chasing….“These measures, in isolation, could lead to an increase in maximum borrowing sizes. But changes to the use of HEM and the roll-out of comprehensive credit reporting will offset some of the impact.”
