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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: Investor home loans fall to near two-year low in February

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Investor home loans fall to near two-year low in February

Australian Financial Review Apr 12 2018 6:05 PM

Michael Bleby


Investor home loans fell to 35.9 per cent of all housing credit in February, the lowest level in nearly two years, as regulator-driven banking curbs held back loans on investment properties.

While investment loan commitments rose 0.5 per cent from January to a total $12 billion, this marked a 5.9 per cent fall from the $12.8 billion figure a year earlier, official figures on Thursday showed. Over the 12 months to February total investor loan commitments fell 0.7 per cent from the same period a year earlier to $146.4 billion.

The weakening figures for investor borrowing – along with owner-occupier loan volumes that declined for a third month – were likely to reinforce the decline in prices in the country's two largest cities, JP Morgan economist Henry St John said.

"Investor lending has tended to be fairly responsive to trends in property price growth, and declining returns in the two major investment markets of Sydney and Melbourne is working to lower the expected rate of return for these buyer types, lowering their demand for new financing," Mr St John said.

"A continuation in the weak trend in both investor financing values and owner-occupier volumes will continue to weigh on major market prices over the coming months."

Weaker house markets in Sydney – where prices 2.1 per cent in the first three months of the year – and Melbourne are pushing up rental yields for investors as purchase prices fall or rise more slowly than rents.

Credit curbs

Even though the value of owner-occupier loan commitments, excluding refinancing of existing loans, rose 1.4 per cent in February, the number of loans ticked lower to a seasonally adjusted 54,427 from 54,511 in January, having peaked at 57,066 in August last year and this suggested credit curbs were also affecting owner-occupiers, Mr St John said.

"The decline in owner-occupier housing finance has been a more recent development, and likely reflects both declining demand for new loans from households, as well as the imposition of stricter lending practices, particularly through the Banking Royal Commission period," he said.

First-home buyer loans remained strong, with the number of first-home buyer loans jumping to 8782 – before seasonal adjustments – from 8379 in January. First-home buyer loans accounted for 17.9 per cent of total loan commitments. Over the 12 months to February, first-home buyer loans totalled $35 billion.

Stamp duty cuts for first-home buyers made by the Victorian and NSW governments in July last year are harming the very home buyers those states' political leaders said they were designed to help.

ANZ figures last week showed properties in the lowest quartile of both the Melbourne and Sydney markets had risen faster than the overall market as a result of the stamp duty cuts, pushing prices higher for the next round of aspiring first-time buyers. Thursday's figures show the cuts had pulled more buyers into the market – even if it meant fewer down the track.

"From the perspective of getting first-home buyers into the market, the NSW and Victorian state governments' stamp duty incentives are working a charm," , ANZ senior economist Daniel Gradwell said.

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