The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that ran from 2017-19 had many impacts on the finance sectors. Some were ripples, some were tidal waves.
It has left many confused over the state of the Australian banking and lending sectors, and where they stand with current and prospective financial products. Take the great Australian dream of owning your own home, for example.
What impact – if any – has the Royal Commission had on those who are either paying off a mortgage or seeking to apply for one in the near future?
What the Banking Royal Commission means for those looking to get a mortgage
There have been many myths surrounding home loan applications in the wake of the Banking Royal Commission. Some outlets have reported “bottlenecks” in lending approval; others have flagged that a sea of new regulations was making it harder to get a mortgage than before.
Fortunately, once the emotion and panic are stripped away, the aftermath of the Banking Royal Commission means that applying for a mortgage is now more easy for the consumer. The key changes surround more stringent verification of income and expenses of applicants to ensure that they have the capacity to repay the loan.
This should not be viewed as the banks shutting the door on lending, rather it serves as protection for consumers who may have previously been granted loans they had no hope of paying back.
Ultimately, as long as you have savings, a strong credit rating and regular income – the great Australian dream is still alive and well.
Mortgage brokers will be bound by law to act in your best interest
Here at Dreamcatchers Lending, our motto is ‘lending made simple’. We make it our commitment to ensure that clients are on track with doing the right thing to benefit their future. Focusing on relationship-building, and not just the transactions you place, we support you in simplifying the financial process.
Because of these values, we differ from many other mortgage brokers in that we want to ensure our customers so they can get the best deal possible without being mired in red tape.
Have you reviewed your mortgage recently? We encourage you to assess your current policy to assess if there are beneficial opportunities available. Contact us on 0413 868 333 or email firstname.lastname@example.org to get started. We’re always more than happy to provide reliable, transparent and honest guidance.