Would there be any regulatory benefit to preventing locking in of rates?

[jerrybee]

This could be a stupid question but since things are tight for me I'd like to analyse and pre-empt as many risks as possible, especially with all these serviceability changes taking place.

So as you know, if you want to extend an IO only loan you need to do a refinance. Basically start all over again - show proof of income etc.

Would it serve any regulatory purpose for ASIC to also apply this to the fixing of existing variable loans? Right now I have most of mine as variable, is it possible one day that they could say effective immediately, you'd have to refinance in order to fix it? Basically - whether you fix it or not would need to be a decision you made up front.

As I said...probably a stupid question, but thought I'd ask anyway...

 

[Angel]

Hey, there's no such thing as a silly question.

 

[Rolf Latham]

So as you know, if you want to extend an IO only loan you need to do a refinance. Basically start all over again - show proof of income etc.

Would it serve any regulatory purpose for ASIC to also apply this to the fixing of existing variable loans?

ASIC dont really care...............

They certainly care about us making comment.

BTW, if IO life is important to you, one just needs to choose the right lenders if at all possible.

Right now, many will do an IO extn on tick and flick.

If rumours are right though, APRA want to make it really tough for anyone to offer anything anytime anywhere, and want all lenders to offer the same policy, the same servicing calcs and the same product mix, with the primary differentiation to be price ...............

Double speak for sure, and welcome back to the days of the domination of the lenders with more than mainly mortgage income.

ta
rolf

 

[Redom]

If rumours are right though, APRA want to make it really tough for anyone to offer anything anytime anywhere, and want all lenders to offer the same policy, the same servicing calcs and the same product mix, with the primary differentiation to be price ...............

Double speak for sure, and welcome back to the days of the domination of the lenders with more than mainly mortgage income.

ta
rolf

Byres made it very clear that he didn't want this in his speech last week - not a healthy place to be from a competitive sense. But given some changes going on, can see how it looks like its moving in that direction.

In regards to OP - i don't think thats possible. Fixing/Not fixing is a bank product i think driven by funding developments in credit markets, not necessary something thats prescribed from a regulator.

Cheers,
Redom

 

[Rolf Latham]

Byres made it very clear that he didn't want this in his speech last week - not a healthy place to be from a competitive sense.

No one really wanted the place where planning is today as a result of FOFA either............

ta
rolf

 

[Ausprop]

or just make all loans fixed for the term of the loan, solves that problem

 

[Rolf Latham]

or just make all loans fixed for the term of the loan, solves that problem

that can be done if we can have assignable mortgages as in the US..............

ta

rolf