Its to do with the new regulations. I'm a broker myself, the hoops and red tape is a mine field. Servicing someone has become nearly impossible. The assessment level a ludicrous. If someone is looking for a loan at say 3.49% with banks the assessment level is now 7.25 to 8.25 based on P/I Then you have people over 50 years of age that's even worse we have to assess them at these levels to retirement age meaning if you are 56 and want to buy a home retirement age is 67 this is the amount of years you can borrow so we have to assess you at the new assessment rate over 11 years not 30. Then we have the HEM to contend with this is where the government tells you how much you spend each year to live even when you work out your own budget its over ridden by the policy. People over 40 years of age are now being asked to write exit strategies to obtain home loans. Very few people are eligible to obtain a home loan unless they have massive income little to no debt. Here's a small article on it. https://www.abc.net.au/news/2018-04-06/homebuyers-tougher-borrowing-rules/9626318 For small investors getting their loans converted back to interest only is nearly impossible.
Suncorp would be very wise to sell their banking arm and get out while they can. If Labor get in and hold the balance of power with Greens its just going to get a whole lot worse.
SUN Price at posting:
$13.83 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)