Digital Finance Analytics (DFA) Blog
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As part of the discussion paper, released today APRA, says that addressing the systemic concentration of ADI portfolios in residential mortgages is an important element of the proposals. They have FINALLY woken up to the risks in the system, just years too late! We have significant numbers of loans in the system currently that would … Continue reading “APRA Homes In On Mortgage Risk”
From NestEgg.com.au Surging property prices in Australia’s capital cities can be attributed to irresponsible lending, but it’s not just young buyers suffering the consequences, a consumer organisation has said. In its submission to the royal commission into Misconduct in the Banking, Superannuation and Finance sector, the not-for-profit consumer organisation, the Consumer Action Law Centre (CALC) … Continue reading “Irresponsible Mortgage Lending A Significant Risk For Seniors”
Online mortgage marketplace HashChing has collaborated with research firm Digital Finance Analytics to produce the top eight mortgage predictions for 2018. 1. Mortgage interest rates are expected to continue rising. The consensus among HashChing brokers is that major banks will continue to nudge interest rates higher. HashChing broker George Kozah said the average home loan … Continue reading “HashChing and DFA Top Eight Mortgage Predictions for 2018”
In an opinion piece on the UNSW site, Professor Richard Holden writes that troubling borrowing and lending markers in the Australian housing market suggest that the lessons from the US mortgage meltdown have not been learned. We agree! For all the endless discussion of housing prices in Australia, it is very hard to tell if … Continue reading “The Property Market is Repeating US Mortgage Mistakes”
SMSF and accounting professionals alike are increasingly finding that clients are willing to take risky moves with their property portfolios, in an effort to reduce their mortgage stress. From SMSF Adviser. These patterns are surfacing as instances of mortgage stress continue to climb significantly in Australian households. Research house Digital Finance Analytics (DFA) has released … Continue reading “Property, debt stress prompts clients to take tax risks”
We have now had results in from most of the major players in retail banking this reporting season. One interesting point relates to mortgage defaults. Are they rising, or not? Below are the key charts from the various players. Actually, there are some significant differences. Some are suggesting WA defaults in particular are easing off … Continue reading “What Does The Recent Bank Results Tell Us About Mortgage Defaults?”
We have been busy adding in new functionality to our Core Market Model, which is our proprietary tool, drawing data from our surveys and other public and private data sources to model and analyse household finances. We measure mortgage stress on a cash flow basis – the October data will be out next week – … Continue reading “Getting Deep and Dirty On Mortgage Risk”
From The Adviser. NSW MP Kevin Hogan said that mortgage brokers have told him that it is in their best interest to get clients to borrow as much as they can. Mr Hogan was on the parliamentary committee that questioned CBA chief executive Ian Narev in Canberra on Friday (20 October), where he was eager to find … Continue reading “MP grills CBA on brokers, offsets and big mortgages”
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 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”