Residential Borrowing

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GUEST OBSERVER
The Federal Government in its Budget pledged to "enhance access to asset backed financing" by removing key barriers to the use of asset backed financing arrangements imposed by Australia's current tax laws.
While the announcement was not made with much fanfare, it may prove to be one of the most significant tax changes in the Budget.
It is anticipated that the announcement may open the door to Islamic financing in Australia, thereby allowing Australian borrowers to access a new financial market to fund real estate and infrastructure projects.
This tax measure will apply from July 1, 2018.
John Moutsopoulos is partner, Norton Rose Fulbright Australia and can be <a href="https://www.nortonrosefulbright.com" target="_blank">contacted here</a>.
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Property 101: Asset backed financing – Islamic investment

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Aussie Home Loans founder John Symond said the government is putting too much pressure on lenders over stringent customer living expense checks.
He said the housing recovery may be at risk because lenders are "running scared" with about a fifth of customers who would previously have been given loans now being denied for fears if being pursued by regulators.
"I think regulators are going too hard. I think government's got to get involved and say that look we just want to have responsible lending, we don't want to make conditions so easy that anyone can get through," Mr Symond told the Sydney Morning Herald.
"It’s got to the point where lenders and credit people are running scared, you’ve just got to be a bit careful here. We’ve got a very brittle economy, we’re still travelling OK, housing has taken a hit, it’s getting off the ground. Lenders have all been in the firing line of the royal commission," he added.
The remarks come as the Australian Securities and Investments Commission (ASIC) is consulting with the banking industry on responsible lending laws.
The chief executive of the Australian Banking Association, Anna Bligh, said she thought ASIC was "going to a great deal of care to get it right" when she commented on responsible lending.
"We need to have strong customer protections, but we don’t want to lock down access to credit to the point where harms the economy,” Ms Bligh said.
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