‘The heavy lifting has been done’ according to APRA and the banks’ lending practices are now on a sounder footing.
· With many of APRA’s speed bumps now removed, does that mean that there will suddenly be a property boom? Unlikely
· Will the banks continue to ask borrowers rigorous questions for a loan application? Probably
· Will it still be possible to finance a property purchase? Certainly
· Will borrowers be able to access funds from more than just the banks? It is already happening
Property lending has reached a pivotal point. And, what is coming after the Tsunami of a lending crackdown is looking more professional and considered.
This week, Bankwest announced strict mentoring standards for new brokers looking to enter the mortgage broking industry. And, there is anecdotal evidence that some lenders will not accredit new brokers if they are single operators.
Good brokers welcome the recent lending restrictions and the findings of the Royal Commission as they believe it will make the mortgage broking industry even more professional.
Good brokers are optimistic about the future of their businesses; with lenders becoming more conservative borrowers will increasingly approach brokers who can source alternative funds.
Over half of Australian mortgages are written by brokers.
And with one lender announcing the closure of 29 branches this week, the shift towards broking will only get stronger.