Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Continuing our series on Loan To Income (LTI) ratios, using our household survey data, today we focus our attention on Melbourne. As previously discussed Loan To Income is a relevant measure when considering how stretched households may be with regards to their mortgage loans. So first we present the results using our geomapping analysis. The … Continue reading “Melbourne Loan To Income Data By Post Code”
Some time back we reported on the results of our household surveys, looking especially at the loan to income (LTI) data. This was prompted by the Bank of England’s move to limit banks abilities there to lend higher LTI loans. At the time we showed that at an aggregate level, LTI’s in Australia were higher … Continue reading “The Loan To Income Mess”
As we highlighted recently, the Bank of England is supporting the imposition of loan to income (LTI) ratios on banks in the UK, as a way to manage risks in the housing sector. So today, we start to explore loan to income data in Australia, captured though our rolling programme of household surveys. We start … Continue reading “Australian Household Loan To Income Ratios Are Worse Than In The UK”
The UK Financial Policy Committee is is charged with taking action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. In their June 2014 report they highlighted that the recovery in the UK housing market has been associated with a marked rise in the … Continue reading “UK To Cap High Loan To Income Mortgage Loans”
The ACCC has authorised changes to the Australian Banking Association’s (ABA) Banking Code of Practice, after imposing several conditions aimed at improving the code’s benefits to low-income customers. The ABA, on behalf of its 23 members, sought ACCC authorisation for changes to update its Banking Code in response to recommendations of the Royal Commission into … Continue reading “Banking Code Changes to Assist Low Income Customers and Farmers in Drought”
The latest UBS study, the fifth in their series looking at lending standards, and based on a survey of around 900 home loan applicants reveals that (perhaps surprisingly) there was a rise in “porkys” being told as part of the mortgage application, despite the Banking Royal Commission. As a result, more than a third of … Continue reading “Liar Loans Not Gone Away”
The Federal government has today announced that it will be commissioning an independent review of the retirement income system, via InvestorDaily. This review was recommended by the Productivity Commission in their report Superannuation: Assessing Efficiency and Competitiveness and comes 27 years after the establishment of compulsory superannuation. The review will look at the three pillars of the … Continue reading “Government launches retirement income review”
The RBA just released a FOI relating to the Federal Government’s proposed First Home Loan Deposit Scheme. How many loans might be made? “the point of the estimates is that the various caps on the scheme (10,000 loan cap, income and house prices) are likely to be the binding constraint on the amount of loans … Continue reading “The RBA FOI On First Home Loan Deposit Scheme”
ANZ have announced a new flavour of interest only loans. They said that from 25th March 2019 they will increase the maximum Loan to Value Ratio of Interest Only Loans from 80% to 90%, and increase the maximum term from 5 years to 10 years. These loans will be marketed only for high-income professionals with … Continue reading “ANZ’s IO Loan Changes Have Risk Written All Over”
In an article, released by the US FED via the first issue of Consumer & Community Context, they explore the impact that rising student loan debt levels may have on home ownership rates among young adults in the US. They suggest that higher debt overall helps to explain lower home ownership. The home ownership rate … Continue reading “Do Student Loans Cramp Home Ownership Rates For Young Adults?”