Lending can be harder for investors
In the news recently has been lending to investors. The lending regulatory body, APRA (Australian Prudential Regulation Authority) has put measures in place in an effort to rein in the sector. Early indications are that it is succeeding.
A few of the major changes that have been seen in the past few weeks by the major banks include:
- Not offering additional discounts over and above the published “package discount” rate.
- Negative gearing tax flow benefits being removed from bank calculations, thereby lowering the borrowing ceiling.
- Lower rents being used in calculations as the rental market remains sluggish.
So what do these changes mean?
It is critical that if you are considering an investment property, you speak to a broker before you head out searching for property. As brokers, we can assist you with pre-approval so that you know how much you can borrow. Further, our role as your broker is to work to get you the best possible deal. It is our knowledge that you will benefit from. We are up to date on all the latest trends including compliance that all the lenders are currently adhering to. This means, we know what each lender is looking for when it comes to lending money to investors.
Talk to us before you make a move into property investment!