Banks increase Investment lending rates

Do you own an investment property? You may be in for a shock next time you check your interest rate. In recent months Australian Banks have clamped down on their investment lending as pressure is mounted by Australian Prudential Regulation Authority (APRA). This has been driven in part by threat of a bubble emerging in the booming Sydney housing market. Sydney’s median house price reached a staggering $1,000,616 in June, driven up in part by Chinese investors.

To limit their exposure, the major banks have reacted by implementing significant policy changes. We have witnessed substantial decreases in the major banks ability to lend high percentages of properties’ values. In a massive cash grab, banks have also increased interest rates on new and existing investment loans by up to .47%, that’s a staggering $1,645 per. Year on a $350,000 loan.

As a Mortgage Broker we have access to over 30 different lenders. Some of our lenders have little exposure to investment lending and are keen to secure your business. We have no preference of lender, our job is to save you time and money by researching and negotiating your scenario on your behalf. We are able to present many alternative options to investors looking to secure investment funds on the same terms as your own home.

Owner occupied home loans are directly benefiting from this investment slowdown as banks continue to strive for increased market share. Lenders are competing fiercely for your business through offers of large cash refunds, interest rate discounts and annual fee waivers.

If you would like to take advantage of the current discounts on offer for home owners, or discuss your business or investment finance solution, please enquire today.