Thursday, August 23, 2007
Cannex estimates that the low-doc mortgage market is worth $38 billion today and accounts for 16 per cent of the home loan market. It reviewed 389 loans. The most significant finding of the survey was the wide variation in rates.
They liked the loans because they didn't have to supply a year's worth of payslips to get approval. Because of what is happening in the US, experts say we have only seen the tip of the iceberg. Cannex said the 15 biggest banks may do more than just threaten to push up variable home loan rates in the coming months if the crisis worsens, but it was the smaller Australian low-documentation lenders that may start to drop like flies