In recent times, Australian banks have been tightening their investment lending, in order to comply with new guidelines that have been set by the Australian Prudential Regulation Authority (APRA).
As part of the new guidelines, APRA has asked the banks to cap their investment loan growth to 10% p.a, and as a number of lenders have already achieved (or exceeded) their limit, the banks are under increasing pressure to reduce their investment lending. This has brought a significant change to the finance market, and has been designed to slow the growth of mortgage investment lending and promote the ongoing strength of Australian banks.
So if you are considering an investment in property then your first step is now a crucial one. It is extremely important to consult with your Financial Advisor / Mortgage Broker to ensure that you are up to date with current lending policy, as well as the impact it may have on your proposed investment plans.
Encompass Financial Services can provide comprehensive advice, as well as referral to brokerage services (that have access to many lending facilities). The great news is that our advice, referral and subsequent lending service won’t cost you a cent.