It’s double down week on Money Road. First-home buyers are borrowing more to own less. Retirees are mortgaging the family home to fund cruises. Investors are being offered easier loan terms - just as the government tries to loosen their their grip on the housing market. Also, the little bank which discovered that "growth" and "due diligence" don't always travel together.
Banks are slashing rates like there's a fire sale on money, first home buyers are out of the room, and mum and dad have the jitters. Nobody has fallen over yet, but everybody’s nervous. Welcome to The Wobble
Once upon a time, a simple handshake was enough to close a deal. It was a time when banks trusted mortgage documents, customers trusted banks, buyers trusted professionals and regulators trusted industries to police themselves. So, what happened?
This week, the government chased very small wins, a bank rediscovered compassion, regulators dived into murky waters and investors realised there is no accounting standard called optimism.
This week on Money Road the government discovers that unpopular taxes are unpopular. Banks learn the hard way that customers don’t like their money stolen and accountants get another lecture in ethical behaviour.
Hedge funds are betting against banks, lenders are trimming rates, economists are arguing about whether a recession exists and Australians are borrowing like tomorrow has been cancelled. Another perfectly normal week on Money Road
