Tighter credit and changing lending policies are creating confusion and complexity in the third-party channel as brokers receive conflicting messages from bank BDMs and credit assessors on prime mortgage deals.
Fears are growing about a potential “credit crunch” that has largely been driven by the cross currents of regulatory measures, changing bank appetites and greater scrutiny of the mortgage industry from a series of inquiries, reports and most notably the Hayne royal commission.
These factors have had a significant impact on the credit policies of the major banks in particular. While APRA has removed its 10 per cent cap on investor lending, the big four are still very much under the watchful eye of the regulator and have shifted to far more conservative home lending strategies.
Award-winning Queensland-based broker Xavier Quenon told The Adviser that within the banks there is now “conflict” between BDMs, credit and sales.