'The securities watchdog has noted that loans through mortgage brokers, which make up around 60 per cent of the total, typically involve higher leverage, are more often interest-only and are more likely to slip into default."
Have you considered;
- Borrowers in more borderline, challenging, or complex circumstances would be more likely to use brokers than those who have relatively simple requirements who would be more likely to go direct to lenders.
- Investor borrowers, for example, would be more likely to use a broker. And those borrowers would more likely prefer interest only loans, for the tax related reasons that anyone who knows a thing or 2 about investment properties would know.
- Investor borrowers and those with more complex situations would likely have a greater probability of default than low leverage simple borrowers.
- First home buyers are more likely to use a broker than going direct, and those applicants usually borrower a greater LVR.
It's easy to jump to conclusions but if you can apply some logic, you might surprise yourself...
Oh and I'm quite sure Katherine Temple is an expert on the Netherlands market......really...? And..... We are going to use the Netherlands as a model to follow???? Why.....?
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