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Ben Kingsley Blog post by Ben Kingsley

Lenders doing what they do – Lending Money

With all the global economic uncertainty and the flow on effect to the cost of funds for lenders and the risk of possibly a softening Australian economy, one might be thinking the banks will be considering tightening up lending policy.

Our read of home loan lending policy is a little bit more macro, driven by the banks’ need to continue to strive for profitable returns for shareholders. Given the well documented issues in the business and corporate areas at present, we are seeing residential lending policy is quite reasonable at the moment. The 0.25% reduction on rates in November has flowed through into the lenders’ borrowing assessment calculators, meaning one’s borrowing power is slightly enhanced with this change. (Still, you should only be spending what you can afford to repay – we don’t want you ending up as another Greece!)

Therefore we see 2012 as being another competitive year and research suggests that brokers will move to control 50% of all new lending in the market. Interesting, isn’t it?, banks have been around since the start of the nation over 200 years ago and brokers have been around about 16-17 years. It speaks volumes that consumers are seeking out specialists who have a full suite of lenders and loan options in one place and provide professional advice. So consumers can make the most informed decision given the broker is working in their best interest in helping them save money.

 

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