Changes to investment lending

May 09, 2017
Joanne Gocher

There have been some recent changes to investment lending which I thought important to share with you.

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 regards to investment lending.

Australian banks 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 have already increased the interest rates on their investment loans and are reviewing rates on interest only loans, fixed rates, lines of credit and more which means your current investment loan interest rate may change.

Please call me today on 8065 4422 to find out more about these changes and for a free review of your current loan.

Posted in: Interest rates

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