…. Tim Brown CEO of VOW Financial, who last week spoke to the Australian Financial Review about the difficulties likely to be faced by investors in this new climate, believes that this situation is unlikely to improve until the market stabilises. While borrowers who cannot access investment loans from the big four banks and their brokers will turn in the short term to the smaller lenders that do not use an internal ratings based approach to credit risk assessment, the longevity of this solution relies on those lenders also staying within APRA’s growth guidelines so as not to draw the regulator’s attention.
“With that amount of volume in the market the second-tier lenders will get chocked soon enough,” Brown predicts.
Source MFAA News