Search results

Agree with Hobo-jo (as usual! :)). Financial stability is now well and truly part of the RBA's job (APRA mainly). Its explicitly stated in their latest MOU with the government. They should play a large role in setting the environment to lending - banks do not experience the full costs of...

Haha, love healthy debate Marty. :) From APRA's perspective, what they're guarding against is financial stability shocks. That shock is likely to come about because people can no longer afford to repay their debt. A mum and dad investor with 1/2 IP's and 500k of debt isn't going to be a...

Thats who they'll be targetting Marty. Mum and Dad investors arent the problem from a financial stability point of view. Speculative credit fuelled demand is.

LVR caps arent that great at targetting risk of managing increases in rates. Income type ratios are much better at targetting this risk.

Haha that is NZ's experience to date.

Just been through the report (FSR biannual report). No rise in mortgage defaults. Massive massive rise in investor home loans in NSW (risen over 100% in 3 years). The rhetoric of the report is very strong compared to the last report.