LENDING

QWHAT CHANGES HAVE BEEN MADE TO LENDING CRITERIA AFTER THE ROYAL COMMISSION AND WHAT MORE CAN WE EXPECT?

Banks seem to be “cycling” their existing clients out and making a push for new customers with a more riskfocused agenda to tidy up their books. For existing clients, less attractive rates and more scrutiny are commonplace.

Turnaround times have blown out for loan processing, in some cases taking weeks for an approval. Limited interest-only lending and borrowing amounts for investors have slowed lending in this space, which in turn has had an effect on property values. What next? Expenses are under greater scrutiny. Discretionary expenses are taken as though they are fixed and consumers’ spending habits will need to adapt to facilitate lending.

More and more consumers are using a broker to find a bank that has the appetite for their specific scenario.