Search Results for: mortgage stress

Canada Reinforces Mortgage Underwriting Guidelines

From Moody’s. On Tuesday, Canada’s Office of the Superintendent of Financial Institutions (OSFI) published the final version of “Guideline B-20 − Residential Mortgage Underwriting Practices and Procedures,” which mandates more stringent stress-testing for uninsured mortgages. The guideline, which takes effect on 1 January 2018 and applies to all federally regulated financial institutions in the country, … Continue reading “Canada Reinforces Mortgage Underwriting Guidelines”

Mortgage Tightening – The Property Imperative Weekly 30 Sept 2017

Mortgage Lending is slowing and banks are tightening their underwriting standards still further, so what does this tell us about the trajectory of home prices, and the risks currently in the system? Welcome to the Property Imperative weekly to 30th September 2017. Watch the video, or read the transcript. We start our review of the … Continue reading “Mortgage Tightening – The Property Imperative Weekly 30 Sept 2017”

More than 30,000 of the nation’s ‘richest’ households in financial distress

From The Australian Financial Review. More than 30,000 households in the nation’s wealthiest suburbs are facing financial stress, with hundreds risking default over the next 12 months because of soaring debts and static incomes, according to analysis of the nation’s household financial hotspots. Hundreds of households in Sydney’s harbourside Vaucluse, where the median property price … Continue reading “More than 30,000 of the nation’s ‘richest’ households in financial distress”

‘Mortgage buffers’ will protect households from rate rises: Treasurer

From The Adviser. Treasurer Scott Morrison has said that interest rates are “obviously” going to rise in the future but that many home owners would be able to avoid mortgage stress thanks to “mortgage buffers”. Speaking on Paul Murray Live on Sky News on Wednesday (6 September), Treasurer Scott Morrison was asked about “mortgage stress”. … Continue reading “‘Mortgage buffers’ will protect households from rate rises: Treasurer”

Westpac Q3 Update – Capital Strong, But Mortgage Risks Higher

Westpac released their Q3 Capital update today. The CET1 ratio was 10% at 30 June 2017, and equivalent to 15.3% on a comparable international basis.  This is higher than expected helped by strong dividend reinvestment.  They said they would provide further guidance on their preferred CET1 range (8.75%-9.25%) once APRA finalises its capital adequacy framework … Continue reading “Westpac Q3 Update – Capital Strong, But Mortgage Risks Higher”

Mortgages and debt: How lending culture is leaving Australians vulnerable

From ABC News. A decade of housing price rises, low interest rates and relatively easy credit has left Australians carrying the second highest level of household debt in the world. And despite efforts to tighten lending and to address problems in the lending culture, the ABC’s Four Corners program has learnt bank staff and mortgage … Continue reading “Mortgages and debt: How lending culture is leaving Australians vulnerable”

Some Innovative Mortgage Data

RBA Assistant Governor (Financial Markets) Christopher Kent discussed data from their securitised mortgage data pool. Currently, the dataset covers about 280 ‘pools’ of securitised assets and has information on 1.6 million individual mortgages with a total value of around $400 billion. Currently, this accounts for about one-quarter of the total value of home loans outstanding … Continue reading “Some Innovative Mortgage Data”

Rental Stress, The Hidden Problem

There is much discussion of mortgage stress, some of which we highlight by our ongoing research into the growing numbers of households under financial pressure. The results for July will be out soon. But rental stress is less discussed, but in our mind is equally significant, so today we explore some of the data in … Continue reading “Rental Stress, The Hidden Problem”

Will Mortgage Rates Rise Further? – The Property Imperative Weekly 22 July 2017

How much will mortgage rates rise, and when? Welcome to the latest edition of the Property Imperative Weekly, our digest of important finance and property news. Today we are looking back over the week to 22 July 2017. Banks, Mortgage Rates and Household Finances were all in the spotlight. We start with APRA’s announcement that … Continue reading “Will Mortgage Rates Rise Further? – The Property Imperative Weekly 22 July 2017”

Mortgage Rate Warnings Get More Strident

More people are now saying that households need to brace for mortgage rate rises. Among the crowd is Malcolm Turnbull who warned households to prepare for interest rates to climb. It is all a bit late given the level of debt which we have across Australia. As we discussed before, the debt quagmire will really … Continue reading “Mortgage Rate Warnings Get More Strident”