Bank lending for housing will fall further after comprehensive credit reporting: Robert Gottliebsen

Bank lending for housing will fall further after comprehensive credit reporting: Robert Gottliebsen
Staff reporterSeptember 26, 2018

Banks will start sharing lending data ahead of comprehensive credit reporting from next July covering the entire financial system.

"Suddenly banks will discover when they have been hoodwinked by borrowers using multiple banks," The Australian columnist Robert Gottliebsen warns.

"The bottom line is that bank lending for housing will fall further and so will prices in vulnerable areas."

His recent column noted the credit squeeze is already reducing dwelling prices and there is more to come.

The tough times in many areas of real estate (but not all) will continue until the squeeze is reversed, he wrote.

"At this stage there is no crash on the horizon.

"But those dwelling price falls will in time reduce consumer confidence and the price of shares in companies affected by consumer confidence."

Gottliebsen noted that Westpac was the most aggressive of lenders to housing investors.

He noted the fastest-growing area of loans was 'interest only' and Westpac led the pack.

"There has been a huge crackdown and these loans are being converted to interest-and-principal repayments."

Editor's Picks

City Beat January 2025: Sydney property market cooldown slows as new apartment pipeline ramps up
26 Vista Street, Surfers Paradise apartment development, hits 70 per cent sold
Latent Defects Insurance 101: What is the Technical Inspection Service (TIS) Program
City Beat January 2025: Gold Coast property values continue to grow as off the plan enquiries hit near 12-month high
Live parkside in Melbourne for under $500,000