Investor Lending

This last week we may have seen the next phase in Investor lending
changes begin.

When the Big banks first responded and changed their rates to appease
ASIC and APRA rulings many of the non-banks and smaller banks
went hard to buy business.

We are now seeing these lenders pull out entirely as their books have
become overweighted with Investment and Interest only lending.

At the same time, larger banks are stepping back into the Investment
space especially if Principle and Interest repayments are selected. With
aggressive pricing starting to appear at several institutions.

In addition, one larger lender just cut the base <80% investment rate
by 30bps!

In my opinion, the bigger banks play the longer game. Happy to "lose"
business in the short term to position themselves more strongly in the long term.

We may be about to see a resurgence of Big Bank lending in the
Investment market.