The Government Regulator (APRA) has thrown the cat amongst the pigeons within the Banking Industry by making major & immediate changes to the Investment Credit Policies & Lending Requirements for Banks.
The impact of these changes will vary significantly from Bank to Bank due to APRA introducing different rules & requirements for each Lender. The result of such variances is creating vastly different responses by each individual Bank with several being forced to increase interest rates on Investment Property Loans whilst others are having to reduce the maximum loan amounts they can lend to Investors. Other Banks are taking a different tact by seeking to encourage new Home Loans from Owner Occupiers by offering lower Interest Rates for Owner Occupier Home Loans and offering new Home Loan customers of up to “$2,000.00 Cash Back”.
With even more changes anticipated over the next few weeks there are plenty of reasons for Borrowers to be both concerned and excited however it is vital to KEEP AN EYE ON YOUR HOME LOAN and INVESTMENT PROPERTY LOAN as the Banks are making changes on a daily basis and whilst there will be amazing opportunities available there will also be many potential pitfalls to be wary of.
If you wish to discuss how you can navigate your way through all the confusion & ongoing changes please contact our experienced Mortgage Specialists.
