Recent changes to investment lending may see your lender increase the interest rate on your current investment loan.
It’s been a bumper year for property investment, with 37% of new property loans being accounted for by investors.
In a bid to hose down speculative property investment and help property price growth settle to more sustainable levels, the Australian Prudential Regulation Authority (APRA), has set new expectations in relation to investment lending.
Australian lenders have begun to tighten their investment loan criteria following guidelines released by APRA, which oversees the activities of banks, credit unions and building societies.
Lenders have responded to these new guidelines in a number of ways. Some have removed or reduced interest rate discounts for investors while others have lowered their loan to valuation ratios, meaning investors will need a bigger deposit.
Many of the major lenders are set to increase the interest rates on their investment loans, which means your current investment loan interest rate may increase.
If you are keen to find out more about how this might impact your loan, or your investment plans, just give me a call. I'll be happy to take you through the changes and your options.
At Mortgage Choice in Victoria Point we have access to hundreds of home loan options from our panel of up to 25 lenders. We can help our customers find the right loan for their needs, at the best price, and do the hard work for them.
Ultimately we help our customers achieve their financial goals - whether that be buying a home or an investment property.
Let us help you – we can offer our expert knowledge about home loan lending to ensure your finance needs are met – stress-free for you, and with the optimal loan to suit your individual circumstances.
For further information, and to put yourself in the best position with valuable information and guidance, contact a trusted consultant from Mortgage Choice on 07 3286 7711.