Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Tighter lending policies could choke broker business

Staff Reporter 1 minute read

First home buyer activity is continuing to drive strong mortgage sales for brokers but increasingly tight lending criteria could hit volumes AFG warns.

AFG revealed a record $800 million written in first home buyer business in March with total sales reaching $3.1 billion.

But Mark Hewitt, AFG general manager of sales and operations, said the boom masked growing evidence of credit tightening by the major lenders which could lead to a decline in loans written.

“The truth is that we’re seeing a big reduction in the proportion of loans that are approved and eventually settle.

"Once the boost to the first home buyer grants ends in June, we face the possibility of a bleak mortgage winter.”

Mr Hewitt said the major lenders had benefited from generous government support and should do their part by providing access to credit on reasonable terms.


Tighter lending policies could choke broker business
default
TheAdviser logo
default

 

more from the adviser
ASIC TA ASIC to update ACL process following security breach

The financial services regulator is working on “alternative arr...

money au ta Lenders extend cashback offers

Several lenders and their subsidiaries have extended their cashba...

ren wong N1 pivots to become SME lender

Diversified broking and non-bank lending group N1 Holdings has an...

FROM THE WEB