Bank lending practices are changing – how it affects you, and how to protect yourself
Recently, the banks have raised interest rates for investor lending by as much as 29bps (.29%) – more than a standard Reserve Bank Increase.
Why? Because recent moves by APRA are forcing banks to reduce the growth rate of their Investment Lending and the size of Investment Lending portfolio’s compared to Owner Occupied lending. This is an effort to slow down property price growth driven by this sector.
Rather than stopping or tightening credit policy, the big 4 banks have instead opted to increase their Investment Loan interest rates and reduce LVR’s.
At least one major lender (NAB) will also be increasing the interest rates for Interest Only loans, and they have announced the interest rate increase will apply to existing lending https://www.acheterviagrafr24.com/commander-viagra-generique-homme/ as well as new lending (other lenders are following suit).
Many thought this was just a money grab opportunity for the lenders. However AMP are now ceasing investment lending completely, including SMSF lending. The SMSF space was a niche product for AMPas they were one of only two lenders to offer an offset account with this cialis generique product.
The fear for OUR existing investor clients, and those considering investing, is very real and your next move requires careful consideration.
What can you do?
- Switch to a fixed interest rate.
a) PROs: Certainty
b) CONs: Banks rarely lose this bet; you also forego flexibility
- Switch to another lender who does not have Investment Loan portfolio issues (generally the second tier banks such as ME Bank, Bank of Queensland etc)
Don’t get caught out – talk to us
- If you’re an existing investor, call us to discuss your options so you can determine whether you need to take any action.
- If you’re planning to acheter viagra invest in the near future, it’s vital to note that any lending changes may apply to existing loans. Call us and we’ll go through your options with you.