Brokers say recent criticism from banks amid the banking royal commission are a diversionary tactic and that if a flat fee for their service was introduced it would make home loans more expensive.
A key outcome of the current banking royal commission shapes as reduced borrowing capacity for homebuyers.
UBS says the Australian Prudential Regulation Authority (APRA) has been hinting at moves on serviceability and the banking royal commission has had its early focus on responsible lending and it’s building pressure on regulators to act.
The Commonwealth Bank has issued a round of interest-only rate cuts and the other major lenders are expected to follow suit.
Banks could soon be verifying potential borrowers’ incomes and expenses through a digital automated process.
One of the major banks has announced a double change to its home loan rates.
Australia’s big banks have been hit with a bank levy in today’s Federal Budget that will raise $6.2 billion over four years.
Two of the country’s big four banks say changes to capital gains tax should at least be considered to help reduce property demand and assist with affordability.
In a further sign of lender crackdown, the Commonwealth Bank has made an out-of-cycle interest rate hike to investor loans.
In efforts to tighten lending, Bankwest has decided it will ignore negative gearing tax benefits for property investors when it calculates loan eligibility serviceability.
