I read a great article put out recently by Pete Wargent talking about his views on banking and the current credit squeeze. The gist on of the article really went on to say “Lenders Gonna Land”. What he meant by that is that banks are exist to make a profit. Nothing else. How do that make a profit? They lend money. They lend money out at a higher rate than they pay for it. Banks have been under immense scrutiny in recent times for mal practice with both APRA and the Royal Commission really putting them through the ringer. However, now that has all ended. Through the Royal Commission banks cleverly self-regulated. Now that they Royal Commission has finished it will be back to usual pretty soon.

Wargnet noted “The RC final report being submitted only in February 2019, this is all very much fresh in the memory, so any loosening of the credit taps is likely to be gradual.

But still, with a smaller mortgage pie to be shared around – lending volumes are down by a fifth from a year earlier – and major banks having lost market share in recent years, I believe there will be some policy moves to win business and get mortgage book growth back into positive territory.

It’s only March, bear in mind, the month after the final RC report, but today we saw the first interesting move of any note, from ANZ Bank”: ANZ will now lend 90% on an investment loan with an interest only period extended from 5 to 10 years.

Bank policy is starting to loosen people. Get ready for things to start moving over the next 6 months.