Earlier this week, chief mortgage broker rentier, Aussie John Symond, “urged the government to intervene to ease the pressure on banks over how stringently they must check customers’ living expenses” because borrowers were supposedly running scared:
[Symond is] pushing for regulators to take a more “realistic” approach to banks.
“I think regulators are going too hard. I think government’s got to get involved and say that look we just want to have responsible lending”…
“It’s got to the point where lenders and credit people are running scared. At least 20 per cent of loans that normally would stake up and get approved are getting rejected,” he said.
But now its all back to boom times as borrowers leap back into the market following APRA’s lowering of the mortgage buffer:
Some Melbourne home buyers are pushing auction prices well above the reserve as they can borrow as much as $100,000 more following recent changes to bank lending rules.
Buyers are paying well above the expected sale price as sentiment picks up, and purchasers fight it out for the few homes on the market.
An increase in borrowing power is behind the large premiums paid, brokers say, along with interest rate cuts and improved confidence in the market…
CEO of Aussie James Symond said improved confidence in the property market was seeing buyers now ready to bid.
“Following the election, there’s more certainty around housing market policies, so Aussies are now ready to get back into buying and selling,” Mr Symond said.
Since then, brokers including Mr Symond had seen a rise in the number of enquiries, from people who had previously been sitting on the sidelines.
“The current market conditions are unique: the market has plateaued, we have low interest rates, and APRA has changed its lending standards,” Mr Symond said.
Which Aussie John should we believe?