Well it’s Christmas and all their Christmases has come at once. Hope you have a good break and a good holiday.
If you haven’t heard already we’ve had the announcement from APRA that their going to be dropping the 30% cap on interest only loans for banks.
Now, that came in March 2017 or might have been a year before, been a good couple of years. That’s really been what’s driven or started this down turn in the market, people thought it was just the market in general overheated, people blamed it on investors in general, people have been blaming it on Royal Commission but the thing that has started all of this up for all of us in finance, real estate industry and for the consumer, at the end of the day is, that APRA has stuck their head in when it was too little too late and they overcooked it, they did a blanket ban on all of the banks which really didn’t take into account the individual and their circumstances and what was required by banks to do that.
Yes, They could have done things but they could have done this a lot better because at the end of the day its hurt the consumer its hurt the borrower and its hurt good borrowers, and it hasn’t allowed the banks to take into account your individual circumstances when making credit decisions for approving loans.
So im excited for next year cause it’ll mean that we got the ability to bounce back, we still got the royal commission though and APRA has said that they’re going to be still looking at the big issues and what’s going to be coming up so stay tuned on that, but have a good break, have a good Christmas, Holiday period and stay safe on the road.