RBA’s Debelle flags housing risk from tighter lending standards

first_imgRBA deputy governor Guy Debelle says house prices could be impacted by tighter lending standards. Image: AAP/Morgan Sette.RESERVE Bank of Australia deputy governor Guy Debelle has warned of the risks to house prices if lending standards are tightened further as a result of the banking royal commission.In a speech in Sydney, Dr Debelle said tighter lending restrictions might have a bigger effect on the amount of funds an individual household could borrow, rather than the number of households that were eligible for a loan.“This, in turn, means that credit growth may be slower than otherwise for a time,” he said.“To me, that has more of an implication for house prices, than it does for the outlook for consumption.”GET THE LATEST REAL ESTATE NEWS DIRECT TO YOUR INBOX HERERBA deputy governor Guy Debelle says house prices could be impacted by tighter lending standards.When it comes to interest rates, the RBA looks set to stay on the sidelines for the foreseeable future, with Dr Debelle stressing that the official cash rate was likely to remain steady this year and into next.“If the economy continues to evolve as expected, higher interest rates are likely to be appropriate at some point,” he said.“Notwithstanding this, the board does not currently see a strong case for a near-term adjustment in the cash rate.”Despite the solid outlook, Dr Debelle focused on risks, such as US-triggered inflation that would drive up global interest rates and push the Australian dollar down. FLOOD SUBURBS NOW BEATING REST OF BRISBANERBA deputy governor Guy Debelle says tighter lending standards could impact house prices. Photo: Penny Stephens.More from newsParks and wildlife the new lust-haves post coronavirus19 hours agoNoosa’s best beachfront penthouse is about to hit the market19 hours agoDr Debelle highlighted the risk posed by Australia’s high levels of household debt, saying it could weigh on consumer spending if borrowing costs were to rise suddenly.“Household income growth has been subdued for a number of years, which means that a number of households may be carrying a larger mortgage for longer than they expected when they took out the loan,” he said.“While they can service the mortgage, it has consumed a larger share of their income for longer than they might have intended.”HOMELESSNESS A ‘NATIONAL DISGRACE’The RBA is expected to leave interest rates on hold for longer than first thought. Image: AAP/Dean Lewins.Commenting on the recent regulatory pressure on banks to tighten lending rules, Dr Debelle downplayed the likely impact of resets to interest-only loans to more traditional principaland interest loans.“These can see the required mortgage payments rise by nearly 30-40 per cent for some borrowers,” he said.“Our assessment is that there are quite a few mitigants which will allow these borrowers to cope with this increase in required payments, including the prevalence of offset accountsand the ability to refinance to a principal and interest loan with a lower interest rate.“While some borrowers will clearly struggle with this, our expectation is that most will be able to handle the adjustment so that the overall effect on the economy should be small.”The RBA has kept the cash rate unchanged at a record-low 1.5 per cent since 2016.last_img read more

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City of Lacey and Thurston County Partner to Support Area Veterans

first_imgFacebook44Tweet0Pin0Submitted by City of LaceyThe City of Lacey and Thurston County Board of Commissioners finalized an agreement to establish funding support and dedicated program resources at the Lacey Veterans Services Hub. The Thurston County area is home to more than 32,000 veterans, and the City of Lacey boasts more active duty service men and women living off JBLM than any other city in the South Puget Sound Area.Under the agreement, the City of Lacey will commit $125,000 to the Lacey Veterans Services Hub in 2017 and 2018 for facility management and operational costs. In turn, Thurston County will provide $30,000 annually during the same period to cover the facility’s annual lease expense. Thurston County will also provide on-site staff to administer the Thurston County Veterans Assistance Program.“Thurston County is a key partner in the future of the Lacey Veterans Services Hub, and their financial investment recognizes their commitment to South Sound veterans,” stated Lacey Mayor Andy Ryder.Since the Lacey Veterans Services Hub’s opening, more than 3,000 client appointments have been booked, including 350 for housing assistance. The operation offers five key “pillar services,” including employment, housing, nutrition, education, and healthcare. In addition, the Lacey Veterans Services Hub has a partnership with the Tacoma and Federal Way Veterans Center to provide behavioral health resources to veterans.“As a veteran myself, I understand how important it is to have resources available to veterans and their families in our community,” said Commission Chair Bud Blake. “We are proud to be providing services to those who have served the country for us.”The Lacey Veterans Services Hub is located on the Lacey campus of South Puget Sound Community College, 4232 6th Avenue SE. The community college provides a favorable lease rate in support of this veterans initiative.More than thirty organizations serve veterans and their family members at the 4,500-square-foot facility. Some of the providers staff permanent “satellite” offices on site, while others occupy rotating office space one or two days a week. Still others offer regular training or counseling sessions in the facility’s multi-purpose room, and some have referral relationships to provide programs and services off-site.For information, contact Scott Spence, Lacey City Manager, at [email protected] or 360-491-3214; or Ramiro Chavez, Thurston County Manager, at [email protected] or 360-754-2964.last_img read more

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