So just when you thought it was safe to go back in the water another tightening of policy has caused a wave of panic amongst many investors.
The unrest caused by the clampdown on investment property lending and interest only loans by the Australian Prudential Regulation Authority (APRA) a few months back seemed to have settled down however the most recent changes from a major bank (ANZ) has got investors back on high alert.
ANZ have imposed Loan to value restrictions in certain postcodes in both Brisbane and Perth which have caused investors to scramble for that extra bit of up front deposit or face the prospect of searching for lending options outside of their originally chosen lender.
As a result the investor loan space has become a complicated proposition, tried and tested investment strategies are being questioned and a rethink in investment goals are being reviewed.
For me the advice I give my clients is don’t panic, with change comes opportunity. Banks are guided by APRA in terms of the mix of loans on their books and postcode restrictions will be driven by their prudential limits in the area.
I am sure this is not the last change we will see but I’m not concerned. Policy changes will happen from month to month and will be different from Bank to Bank.
If you are an investor and need to understand your lending options for an investor loan the team at Mortgage Choice in the Eastern Suburbs are here to help.