All investors and potential investors will be aware that the big 4 banks have tightened up their investment lending by reviewing lending policy and raising interest rates. This is to allow the banks to increase their equity capital levels to meet tougher standards set by the Australian Prudential Regulation Authority (APRA) and the Financial Stability Board (FSB).
Reserve Bank numbers show housing investor credit growth is still running strong, but the growth rate has cooled off from peaks earlier this year. This means the restrictions are having the desired effect. This policy is the Government’s way to rein in property prices but it has left many investors, some with pre approvals already in place, high and dry.
There are, however, many lenders out there who do not have the large investor risk that the big 4 banks have. These lenders are able to offer property investment loans under the same terms as the big 4 banks were offering only a few months ago. These lenders require less deposit and offer competitive rates.
Dwyer Property Investments have built a comprehensive professional network for our clients to take advantage of. One of these networks is a range of mortgage brokers that we have worked with for a number of years. These brokers offer finance that meets Dwyer Property Investments’ specific criteria. We can put you in touch with reputable lenders, many backed by the major banks, with less restrictions. Therefore why put up more cash than you need to just because the Government has had a policy change?
If you want to invest in property but think you don’t have enough deposit, contact me now to find out about more flexible investment lenders.