My Opinion
Opinion

Banks view on DTIs: Don't Try It

We've always believed that banks weren't keen on debt-to-income ratios (nor are advisers for that matter). We can tell you now that banks have fought the DTI proposals strongly.

We've always believed that banks weren't keen on debt-to-income ratios (nor are advisers for that matter). We can tell you now that banks have fought the DTI proposals strongly.

The Reserve Bank released submissions on its proposal yesterday and you can read our summary of them here.

Sticking with this theme a little more banks are denying that there is credit rationing going on. We put the question to two chief executives and here is what they said.

The other theme which you will hear us talk about more is how digital tools are going to, in our view, significantly impact on mortgage advisers. Some of these will be positive and others negative.

On the plus side it is great to see BNZ come out with an online application process for advisers. Also, it was good to hear them talk about it not as something which was done for competitive advantage, although I am sure there will be some of that.

Rather it was about doing the right thing for the industry, lenders, advisers and customers.

And to sign off I have to touch on regulation. All financial advisers who want to be in business after 2019 are going to have to become licensed. This is a must-read piece on many of the things you are likely to have to do.