Good news for borrowers, as APRA removes lending floor

The Australian Prudential Regulation Authority has confirmed that it will drop the requirement that lenders assess home loan applications using a minimum interest rate of 7 per cent. Commentators say there will be a positive impact for borrowers but it…

Post-election ASX bounce to be sustained

Equity investors can look forward to buoyant sharemarket conditions over the next couple of months, if trading after previous federal elections is any guide. UBS Securities charted the performance of the All Ordinaries Index for 120 trading days after a…

Kavanagh

If we accept the proposition that the slowdown in mortgage lending over the past couple of years has been a big factor in the fall in house prices, then the latest mortgage market figures suggest the residential property market recovery…

Q&A 2 October 2018

Q: I am looking for a home loan and I think I will start with an interest-only loan to start with, to make the repayments manageable over the first few years. I read that the banking regulator doesn’t like interest-only…

House prices: lower for longer

Investment bank UBS has issued a residential property outlook report, arguing that this could be the longest house price decline in decades. UBS says that whenever housing has weakened in the past, the Reserve Bank has been “willing and able”…

What Westpac’s responsible lending breach means for borrowers

Home loan applicants have experienced tighter loan serviceability tests over the past couple of years, but things could get even tighter in the wake of Westpac’s big fine for its breach of responsible lending obligations. Lenders are adjusting their income…

What the profit reporting season holds

With the profit reporting season getting into its stride this week, ASX-listed companies are on target to deliver close to double-digit earnings growth. However, there will be significant variations between sectors. UBS says it expects earnings growth of around 9…

Top fixed income managers named

Managed fund researcher Zenith Investment Partners has given its highest rating to four funds in its latest review of the Australian fixed income sector. It also found that the “critical success factors for outperformance” in the sector are changing. The…

Property market outlook worsens

The outlook for house prices in Australia’s capital city markets has deteriorated in recent weeks, with several commentators saying the residential property market downturn will be lower for longer. Last week, Westpac forecast that prices could fall by another 10…

Investors can rely on a growing dividend pot

Dividends paid to Australian equity investors are growing at more than 9 per cent a year, with payouts expected to continue growing for the foreseeable future. According to the Janus Henderson Global Dividend Index, global dividend payments increased by 7.7…