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Australia’s banks and lenders are under pressure from lobbyists to ease their access to finance for Australian property buyers, following a tough couple of years for new borrowers looking to secure credit.
With APRA allowing the banks to decide their interest rate floors and buffers when assessing new loan applications, lenders are under increased pressure to ease their serviceability terms.
Key industry lobbyists, including the Finance Brokers Association of Australia, are pressuring the banks in particular to act on the guidance.
FBAA managing director Peter White said the banks are resisting to act quickly.
“APRA moved to correct this anomaly 10 days ago, but some of the banks have been slow in responding. I congratulate the ANZ for moving to a more reasonable assessment position last week and Westpac for following suit today. I urge the other majors to move as soon as possible,” he said.
Once the banks begin reacting in greater numbers, consumers will benefit with easier access to finance.
“The reduction in the assessment rate will make it easier for existing borrowers to refinance so they can escape their existing mortgage prisons because of unreasonable rates and conditions,” Mr White said.