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Bank Changes are here – June 2015
For those of you who have been following the news, what a way for APRA/ASIC to step in and control investor lending! These regulatory bodies wanted the lenders to tighten their investor lending and it has taken place with a shock to both lenders and investors alike. As RBA kept reducing the interest rates, APRA realised they had to curb investor lending especially with the hot property market in Sydney and Melbourne. One of the initial changes was the pulling back on additional rate discounts for investors. This was not a big deal in itself because even though investors had to pay slightly higher rate, they would have been able to borrow. Some of the banks reduced the amount they wanted to lend to investors. For example Bankwest and Heritage Bank pulled back to 80% maximum lending for investors. The change came into effect immediately which means that many investors with existing pre-approvals at these institutions had to find another lender and also got hit with another credit