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Jessica Darnbrough
The days of 100 per cent lending are all but over, QBE LMI’s chief executive Ian Graham has claimed.
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Speaking at a media briefing in Sydney yesterday, Mr Graham said he didn’t expect to see traditional lenders return to 100 per cent lending any time soon.
“The National Consumer Credit Protection Act has forced Australia’s lenders to be a lot more measured,” Mr Graham said.
“They need to be able to prove the product is not unsuitable, so in this respect I don’t expect them to return to 100 per cent lending.”
But while Mr Graham doesn’t expect Australia’s majors to increase their LVRs back up to 100 per cent, he did say the nation’s non-traditional lenders and non-majors may be in a place to do so.
“Non-traditional lenders may offer 100 per cent LVRS as they try to target niche markets. Though, I think they would find it difficult to source the funding for such products.”
“Overall, I think the new legislation is a really positive move for the industry as a whole as it ensures lenders think more deeply about their customers’ needs.”
