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Sunday 29 April 2018

Chemical Change (Special Report)

Chemical change for Australian lending

'Many people are sticking their heads in the sand, not accepting reality, and hoping this all goes away. ASIC & APRA APG 223 is a chemical change. It's not going away. Those that fail to plan and move with the winds of change will lose.' - Rolf Latham, ASAP Financial Services.

Indeed. I've found that those at the cutting edge of residential mortgage lending tend to be far ahead of the commentariat when it comes to issues related to the tightening of lending standards.

Are you a fund manager trying to get to grips with what changes to Australian lending practices will mean for banks, other lenders, mortgage arrears, construction, developers, and household consumption?

Over the past 18 months there has been a wide range of measures undertaken to tackle residential mortgage lending in Australia from interest-only mortgage caps, monitoring of loan to value ratios (LVR), and arbitrary caps on investment loan books, to more recently an increasing scrutiny of household expenses.

I've seen a spike in recent demand for consulting engagements to discuss the latest trends, and with good reason: they're significant.

If you're interested in what all this means for the lending market, my latest 50-page report for investment funds is available to order now.

Of course, the report runs through all the key data points, which explain the potential timing and impact of these shifts on lending volumes, by purpose, buyer type, lender, and location. 

Where our reports have a key differentiation - and the reason they have tended to be popular - is that they also look more closely at what's happening on the ground and 'at the coalface', and then look to anticipate secondary impacts from rule changes well in advance. 

If you're a fund manager looking for leading indicators, this report is for you.

We'll begin to experience the impacts of certain lending standard shifts immediately.

Email for report samples and an order form.