Good News for Home Buyers

You may have heard in the news that the Banks are tightening their lending policy to investors. We spoke with local mortgage brokers and asked for their opinion. (Article Below)

Also, the Victorian Government has just increased stamp duty for Foreigners – Non Residents who buy property in their state. The increased surcharge will be 3% plus a 0.5% Land Tax for Non Resident absent owners. This would not be good news for investors, if the New South Wales Government adopted a similar policy.

I think the message here is, if you are thinking of investing, you may want to act sooner rather than later.

What does APRA’s crack down on investment lending mean for you?

Written by Aaron Christie David from Mortgage Choice

With news that the Australian Prudential Regulation Authority (APRA) are cracking down on Australia’s lenders and their level of investment lending, potential investors may be wondering what the new restrictions will mean for them.

APRA has announced it would place a 10% annual growth cap on investment lending for Australia’s lenders. This decision encouraged many lenders to start focusing their energies on owner-occupied borrowers.

In recent weeks, some lenders have increased the level of rate discounts they offer to owner-occupied borrowers, which is great news for those who are in the market for their own home.

While APRA’s investment cap should spell good news for owner-occupied borrowers as lenders enhance their offerings in a bid to capture this market, investors may face some challenges.

Since APRA implemented its cap on investment lending, some lenders have started to restrict their loan-to-value ratios for investment lending. One lender in particular has said it will not lend more than 80% of the total value of the property if the dwelling is to be used for investment purposes.

That said, there are a lot of lenders out there in the market that are willing and able to lend to investors, and as your local mortgage broker I have access to hundreds of home loan products from a variety of lenders, I can definitely help you to source an investment loan that is right for your needs.

If you find yourself in either one of these positions – as a property investor or owner-occupier buyer – and would like to better understand your options moving forward, I would welcome the opportunity to meet with you and help you explore what these changes mean for you and what your next steps might look like in terms of moving up the property ladder.