Don't be afraid of investing
If you are thinking about buying or refinancing an investment property don't be afraid!
You have probably heard rumblings regarding Banks and the restriction of investment lending, which has been caused ASIC and the industry watchdog APRA, and restrictions that they have put on the lenders to reduce investment lending.
As a result banks and non bank lenders will continue to increase their investment servicing standards which will reduce their risks, and overall investment loan book exposures. This is exactly the pressure and restrictions ASIC and APRA have designed to make sure the banks reduce investment lending. Unfortunately most of these problems are caused by the Eastern sea board, but the rules always filter down to the south.
Last week we have seen banks such as Commonwealth Bank put a halt to refinancing any investment loans, until further notice, and also have increased interest rates on investment loans as well. Bank west for example sake have also cut negative gearing benefits from the assessment of their loans.
We feel that other lenders will follow in the future depending on their exposure to the home loan investment market. This is sort of going back to the good old bad old days when investment loans for houses where always around 1% higher than a normal residential loan.
I guess that's all the disturbing news, and there will probably be more to come with some lenders, however we also have been inundated with emails from other banks and lenders who are saying they are ok with where their investment books are, and are still offering investment lending and refinance investing as well with good rates. This is not the end of investment lending, it is probably a correction in the market place, but if you are looking to refinance or buy an investment property or any other lending, now is the time to contact your broker and make sure that you are in the right space to either buy, refinance, or to make sure you have the right rate.
Your broker will be is the best person to speak to as we have all the major bank lenders and non bank lenders on board and can give you a non biased comparison of what's out there and what is best for you.
It wont cost you anything to find out whether you have the right loan product or to see if we can save you money.