In a recent interview, Greg describes the challenges of refinancing in the face of ongoing pandemic-related disruptions were discussed. Refinancing has become more difficult due to stringent serviceability criteria and the lingering effects of the pandemic. Many borrowers are finding it hard to switch to new loans due to serviceability issues. Greg explains that while some borrowers meet the requirements, a significant portion struggles to do so because of the prolonged disruptions caused by the pandemic.
The interview highlighted that as borrowers struggle to meet the stringent criteria, some lenders are reducing buffers for specific borrower categories. ANZ is the only major bank not adjusting its serviceability buffers, while others like Westpac, NAB, and CBA have modified their requirements, especially for borrowers with sound credit histories.
Read the full article here:
