The eagLOL has landed

From APRA today:

https://www.apra.gov.au/news-and-publications/apra-increases-banks’-loan-serviceability-expectations-to-counter-rising

What impact does APRA expect to have?

Putting aside the impact from other aspects of serviceability assessment, a 50 basis points increase in the serviceability buffer will reduce maximum borrowing capacity for the typical borrower by around 5 per cent. 

Given some borrowers are already constrained by the floor rates that lenders use, and that many borrowers do not borrow at their maximum capacity, the overall impact on aggregate housing credit growth flowing from this is expected to be fairly modest.

In taking action in relation to mortgage lending standards, APRA is not seeking to target the level of housing prices. Rather, APRA’s objective is to ensure that mortgage lending is conducted on a prudent basis, and that borrowers are well-equipped to service their debts under a range of scenarios.  

So what’s going on? Seems like not muchLOL. Standard EZFKA fare.

Token move, to be seen to be doing something, expecting to accomplish nothing and explicitly distancing itself from house prices (lest they cop the blame, should they collapse, by accident).

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bjw678

It must get hard flapping around that soggy lettuce leaf.

Ramjet

The LOL will be a power of EmBee article later today.

DictatorDavid

I just dropped over to MB to read the comments. Went to sign up for my usual 14 day free trial and they’ve stopped them lol. Have to be a paid up member there now to read comments. End of an era I’ve probably had 1000 fake usernames there haha!

It will be a slow death of MB now.

DictatorDavid

Always 18 months lol

Gouda

Think they needed to do something like quite a while ago. Can remember seeing an advert for a popular share newsletter that was using a $4/cup of coffee a week pitch. It seemed quite attractive, and after working out the price it made me realise how poor the embee marketing actually is.

One just has to look at their engagement on social media, where they seem to struggle on even the ones that favour moderate/left viewpoints.

Chinese Astroturfer

There’s nothing moderate about DLS he’s a fat middle aged soy boy itching for a war with China that Australia will lose in a matter of weeks by just by cutting off oil supplies, forget about actually taking on the 12 nuclear powered pea shooters that will take 20 years to be operational anyway.

Coming

if getting every single thing wrong for the last 10 years isn’t enough to cause the slow death of MB, then I don’t think this will be either

I’m still unable to comment as a fully paid member

Last edited 14 days ago by Coming
bjw678

And still they claim they don;t censor anyone…

Unconventional EconomistMEMBER
October 5, 2021 at 9:51 am
Yet we haven’t silenced you. Why is that? Maybe we arn’t the draconian extremists you make us out to be. We also haven’t attacked the protests or the unvaxed. So why make out like we have?
Get over yourself buddy. Your not even a member, so why should I care what you think?

DictatorDavid

Thanks I got a good fucking lol from this one

Chinese Astroturfer

Leitho admits he doesn’t follow the rules at the park either. Feels he doesn’t have to wear a mask because he’s outside. Rules don’t apply to him. I’m sure he feels differently about people who violate vaccine mandates though.

Patty

Yeah the claim that they don’t censor anyone is complete BS. Leith might not or rarely but others definitely do.

bjw678

This whole site began because people got sick of getting banned. A whole lot more just disappeared never to be seen again and they wonder why they haven’t got a lot of subscribers.

Dave Llewellyn-Simp

I remember when DLS said that he will never charge to read EmBeelol. EmBee echo chamber intensifies. DLS really can’t handle people calling him out when he is wrong.

Chinese Astroturfer

Same for me I do a new free account for each device I’m on. I think you can guess my names if you try hard enough.

stagmal

it makes me wonder how many of the members there are just the same 3 or 4 people over and over again, there’s heaps of weird un-subscribed screen names that show up that all eerily feel like they’re being operated by 1 or 2 people.

that arthur schopenhuer guy is the absolute worst, one of the reasons i stopped going there to read it.

Chinese Astroturfer

A lot about that site doesn’t make sense.

Dave Llewellyn-Simp

‘fart mechanic’ seems to be thelambking.

emusplatt

Dearest APRA,

Please do go fist yourself.

Kindest regards

M E G A B A N K .

Reus's Large MEMBER

“assess new borrowers ability to meet their repayments” since when has that been a factor, the race to get market share means that most of them “assess new borrowers ability to not die till they can offload the property for double the money in 7 years” whether they can afford to meet the repayments is a glitch in the system, who cares if they can’t eat or live as long as they can HODL till the price goes up then all good.

Gouda

Recalling my brief interactions with a broker earlier this year, it seemed that although the banks want a detailed exit strategy for those likely to reach retirement age with their mortgage not fully paid off, this was easily overcome by a reason as simple as “downsizing.”

bjw678

or Use super….

stagmal

the answer to what will happen from this btw is nothing

i have given up trying to follow these little events and portends as though they will ever make a difference to housing

might as well be reading cow entrails

bjw678

might as well be reading cow entrails

Is that the new byline at emmbee?

bjw678

From an MB article today

But even in this scenario, the mortgage rate buffer going from 2.5 to 3.0 percentage points seems like a subtle approach to financial stability and will likely only impact at the margins of borrowing demand.

This subtler change to lending conditions is far less likely to move the housing market into negative territory, and APRA estimates the typical maximum borrowing capacity would only be reduced by about 5%.

An admission of mplol?

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