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Higher funding costs for the banks are helping to create a property mini-credit crunch in Australia, according to analysis by Deloitte Access Economics.
Rising global interest rates are combining with bank caution on lending, via extreme vetting of loan applications in the wake of financial services Royal Commission revelations, to generate a mini-credit crunch.
That’s putting further pressure on house prices, whose falls are gathering pace.
“Higher global funding costs are combining with a sudden tightening in credit availability from the big banks to turn the screws on credit-related sectors,” says Deloitte in its quarterly Business Outlook.
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