The Lending Landscape – Some Current Trends

Posted Wednesday, April 27, 2016 Comments (0)

2016 has started with record Bank profits, interest rates still at historical lows, and a significant amount of experts warning of a unit supply bubble in Brisbane. 

Balmain has been arranging property finance for over 35 years and the the top 3 changes / trends we have identified in the current lending landscape are as follows: 

APRA concerns for lenders 

Lenders are being forced by APRA to look internally at the loans they have written historically, their current portfolio and their “pipeline” of deals to ensure they meet APRA guidelines. This has resulted in significant disruption for their existing clients and Balmain is currently managing record levels of refinance business due to the changing requirements of existing lenders. 

Serviceability 

There is a significantly increased focus on serviceability for all borrowers. Knowing how to present an application that extends both existing loans and new opportunities whilst still satisfying this increased scrutiny is now imperative. 

Pricing for risk 

Lenders are also starting to price new loans and reprice existing loans with greater emphasis on specific risk of both the property and borrower’s strengths. In the past there has been a trend towards a “one price fits all model”, however with Balmain’s assistance, we are now seeing stronger borrowers benefiting from a reduction of margins and fees when being able to demonstrate this to a lender.


Luke McKenzie is a Director at Balmain Brisbane, specialising in sourcing commercial investment, construction and residential finance for property investors, developers and owners in South East Queensland. 

Email Luke: lmckenzie@balmain.com.au
LinkedIn: au.linkedin.com/pub/luke-mckenzie/59/1a0/bb8

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