ASB move puts pressure on rivals

ASB pre-approval cancellations heaping pressure on rivals as RBNZ 'changes the game'

Property

ASB pre-approval cancellations heaping pressure on rivals as RBNZ 'changes the game'

26th Sep 13, 5:46pm by Gareth Vaughan

<a href="http://www.shutterstock.com/">Image sourced from Shutterstock.com</a>

By Gareth Vaughan

ASB's decision to cancel home loan pre-approvals is pouring pressure onto rival banks, says Westpac's head of retail banking Ian Blair.

Blair told interest.co.nz that would-be borrowers who have the door shut on them by ASB will look to the other banks for loans, and many were likely to have pre-approvals from more than one bank.

"What it (ASB's decision) means is that we will see more of the over 80% (loan-to-value ratio) flow than what we previously modelled now coming to us, which will cause a challenge," said Blair.

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1 Comments

by kin | 27th Sep 13, 9:13am 1380230008

What game changed ???

RBNZ new rules will slow property inflation by 6 to 12 months before prices again turbo charge into the strastosphere....It happened in China, Singapore, Hongkong...etc etc

Going round the rules is just another game Banks and Buyers play to get on with this "money for nothing" merry go round.....As long as the Fed keeps pumping $1trillion every year into the world economy, bubbles will be growing and growing and growing until we reach Japan pre 1990....then payback time starts until round two with "Kuroda all-or-nothing" starts again.....