Despite banks increasing interest rates by stealth over the past few months, investor lending continues to grow. This is supported by data published by the Australian Bureau of Statistics (ABS) which showed demand for investment lending grew in January 2017.
Investor housing finance for January 2017 reveals $13.8 billion was committed to investment properties. This represents an increase of 4.2% from the previous month and 27.5% increase year on year. A major majority of the investment is still flowing to established properties. This figure is not surprising given the amount of established housing versus new stock - $1.2 billon flowed to new construction compared to $12.6 billon for established housing.
From an overall perspective, investment loans outstanding to lenders as of January 2017 is $572.2 billion which represents approximately a third of all housing lending.
Even though lenders are increased rates slightly on investment loans, rates are still relatively competitive. My top five panel lenders have rates ranging from 3.99% p.a - 4.14% p.a. Standard lender credit criteria applies but, call Jim for a free on 02 9525 0112 for a consultation.