Tag: financial stability
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How Lowering Australia’s Home Loan Buffer Impacts Borrowing Power
Recent research suggests that lowering the mortgage serviceability buffer could significantly impact Australian homebuyers. Specifically, reducing the buffer from 3% to 2.5% could potentially allow buyers to borrow 5% more, translating to an additional $18,816.65 in borrowing power for the average wage earner. The Finance Brokers Association of Australia (FBAA) commissioned this study, revealing that…
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Australian Mortgage Stress Declines, RBA Urges Prudent Lending Practices
Recent data suggests that Australian mortgage stress is on the decline, bringing relief to many households. The Reserve Bank of Australia (RBA) has emphasized the importance of prudent lending practices by banks to prevent potential risks in the housing market. Variable rate mortgages : hearings before the Committee on Banking, Housing and Urban Affairs, United…