Bank lending standards need to be more consistent to avoid borrowers shopping around to find the lender that offers them the highest loan amount.
It's not likely the Australian appetite for property will change but this means we need to hedge our bets against any risks by improving diversification and the way banks finance mortgages.
Declining home ownership among young people has implications for their long-term financial wellbeing and indeed for the retirement income system.
HILDA survey results show home ownership among young people is declining, as mortgage debt almost doubles for the same age group.
With slow wages growth it is hard for household to “delever” themselves.
The amount of Australians in mortgage stress is the reason why wages growth and the labour market are such a problem - and a big reason for the RBA not to raise rates any time soon.
Slow but steady decline in home ownership continues as 23.6% of all Australian households now rent privately.
The latest 2016 Census data assesses what the national home ownership and rental rates are and how these vary location. It also gives us a picture of mortgage and rental costs.
Data from the Australian Prudential Regulation Authority (APRA) reveals the average balance on housing loans has barely trended upwards over the last five years.
When you look at the data (in three charts) on mortgage stress, the systemic risk of people not being able to repay their home loans appears small.
Declining interest rates have been working for home buyers, now they are working against them.
Declining interest rates has made housing more affordable over the past thirty years, but it has also increased the risk for homebuyers.
Mortgage stress is still a risk for low-income earners, particularly in the country, new analysis from Roy Morgan shows.
New analysis shows low-income earners, particularly in Tasmania and South Australia, face the most mortgage stress.
If consumers don’t like the way their mortgage brokers operates, they can shop around.
The ASIC inquiry into how mortgage brokers are paid won't do much to change an already competitive system.
Wall to wall coverage. Mortgage advertising has a new pitchman.
Is Top Cat trying to tap into our inner huckster and charlatan, or is something else going on in Halifax's new ad campaign?
Subprime loans could ease not only the housing affordability crisis but rising homelessness as well.
The Hollywood flick recalls subprime's role in the 2008 financial crisis, but, by helping more low-income households buy a home, the loans can help ease the affordability crisis and homelessness.
Deceitful Chinese may have trouble getting a mortgage in the not-too-distant future.
Dragon faces via www.shutterstock.com
China plans to create a credit reporting system that ranks people on trustworthiness using a all kinds of data, from finances to Facebook. Sound far-fetched? It's happening in the US too.
The crisis has changed its colours.
The loans that plunged the world into financial chaos a decade ago are beginning to appear again. Just how scared should you be?
Will home owners consider the non-bank sector as major banks increase lending rates?
Last week, Westpac hoisted its lending rate by 20 basis points in a bid to recover the costs of recent capital raisings. There is speculation other banks will follow. Australia’s non-bank lenders could…
A budget without bite for tackling a shortfall of homes.
The budget contained some major housing reforms, but the chancellor had no answer to the sector's number-one problem.
Micro housing could be the solution to helping millennials afford a home.
Home change via www.shutterstock.com
I co-teach a freshman seminar at the University of Texas called “Debt: the Good, Bad and Ugly” that examines the different ways consumers borrow and spend. Do they reflect wise investments in the future…
Are loans guaranteed by parents adding unnecessary risk to the market?
First home buyers looking to break into the housing market are turning to their parents, but it's not a risk-free proposition for either party.
Lending standards are so tight that even former Fed Chairman Ben Bernanke, center, who until recently was one of the most powerful people in the world, can’t refinance his mortgage.
It’s clear mortgage standards have gotten too tight when even a former Federal Reserve chairman who makes as much as US$250,000 per speech cannot refinance his home. Ben Bernanke complained about his inability…
Is our thinking on house prices blurred by irrationality?
The latest house price index figures released by RP Data earlier this week show a year-on-year increase in property values in Sydney of 14.3%. This has sparked the current hot debate on property prices…
Dealing with housing bubbles can get messy for central banks.
Australia’s central bank has formally flagged the use of macroprudential tools to address what it called “unbalanced” lending in its most recent Financial Stability Review. Loan-to-valuation ratio (LVR…
Australia’s love affair with housing is driving up debt.