what , banks wont give loans now ?

| May 12, 2009

It’s surprising i know  ,if a bank stop giving us loans  then who will give us loans. Sounds kind of stupid , but that is what is happening.

All the major banks  westpac , commonwealth bank , Anz bank have tightened their lending criteria

A lot of people are missing out on getting home  loans  , just because the banks  so to speak have stepped up their game  and  rules along with it .They have got new criteria in like genuine savings in the mix to  which automatically disqualify  a lot of people from getting loan , who would probably get a loan before this new criteria kicked in.

So why are the banks are tightening their strings?

well we cant say for sure being the lay man we are , but we can only guess  that they will most certainly bring the unsure economic times into the mix. Now we know for sure  as we can see that unemployment is on the increase  with companies closing down left , right and center  by the day. The banks have already anticipated this and  don’t want people probably  who are not smart enough with their money and defaulting on their home loans to be jumping in and taking loans only to default later due to losing jobs or then  people who cant keep up when the interest rate starts to rise.

The economic analysts have already  told us the unemployment is on the rise and there would be more jobs lost as a result of this  , so definitely the banks are wary and  wont give us loans that easy

so what do we do to counter this?

Not much really  , start saving  and  cut down on that $3.50 coffee at work and take your own DIY coffee.

Another option is start investing in stocks

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Category: Banks, finance, home loans, investment property, Lending criteria, loan to value ratrio, LVR

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