Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
According to APRA, interest only loans continue to grow as a proportion of all home loans. Recently Moodys warned about the increased risks which may stem from this type of loan. So the question is, should we be concerned, bearing in mind the recent RBA comments “indicative of speculative demand motivating a rising share of … Continue reading “Interest Only Loans – The UK Experience”
The ABS released their data series for August covering the entire lending spectrum (the housing details were released previously). The total value of owner occupied housing commitments excluding alterations and additions fell 0.1% in trend terms, and the seasonally adjusted series fell 2.0%. The trend series for the value of total personal finance commitments rose … Continue reading “August Lending Data Released”
In the paper released by the Central Bank of Ireland, it is clear they have gone macroprudential! According to the Irish Times new rules will be applied to mortgage lenders in Ireland from 1 January 2015. A 2 month consultation period now starts, so they may get tweaked before implementation. The UK had announced parallel … Continue reading “Ireland Joins The Macroprudential Bandwagon”
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”