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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: INTEREST ONLY LOANS a real killer. Switch to P & I will likely cost extra $500 per month

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Morgan Stanley: Expect more declining prices this year 12 Jan 2018

Michael Mata


APRA STATS are rubbish!  Do not trust the regulators to tell us all the truth! 

Australians should brace themselves for further house price declines in 2018, according to Morgan Stanley’s Australian housing model (MSHAUS). The model also revealed that the recent strength in building approvals data — which has gotten many excited on the outlook for residential construction activity this year — is unlikely to last.

“Updating our proprietary housing indicator for Q3 20117 data [using an estimate for completions], we find MSHAUS has dropped to a new record low of -1.0, suggesting that the recent decline in prices will likely continue well into 2018,” Morgan Stanley said.

“All categories of the indicator recorded a decline, with the largest moves in credit supply, driven by a sharp decline in the share of interest-only (IO) lending to 16%, following the implementation of lending caps in the middle of the year.

“House Price Expectations also deteriorated notably with the share of households nominating real estate as the wisest place for savings continuing to decline to record lows.”

Restrictions on interest-only lending, introduced by the Australian Prudential Regulation Authority (APRA) towards the end of March 2017, are now starting to have a clear impact.

“Since the implementation of the latest round of macro-prudential measures in mid-2017, the share of new interest-only loans has declined sharply from 36% to 16%.”

Morgan Stanley said the subsequent switch to principal-and-interest mortgage repayments will, on average, reduce household disposable income by approximately 7%.

“Our Alphawise survey suggests that interest-only borrowers are relatively high risk, as they are more highly leveraged, have fewer savings and are more likely to manage costs through credit cards and consumer finance.”

Along with creating additional headwinds for household budgets, Morgan Stanley said APRA’s latest restrictions are likely to see housing credit growth slow significantly over the coming year.



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