– Concerned that you can’t get finance?
– Worried that the banks are making it too hard to buy an investment property?
The good news is that, slowly, the banks are making things a little easier – the ice is melting such that the Australian Bureau of Statistics recently showed that, at $32.6 bn, the value of housing finance commitments is now the highest value for some time.
The banks regularly brief me on the sort of loans they are looking for and how they will compete for your business. For example AMP now offers a structure where investors can borrow at owner occupied rates – but this structure is only available through brokers.
Similarly, at a recent meeting, CBA told me that for specific loans, they will offer discounts up to 1.45 per cent off standard variable rates.
Much of this is because the banks are now comfortably below the 10 per cent investor growth rate that the government regulator (APRA) had imposed on them.
As a result, the banks are cautiously taking their foot off the investor lending brake such that, last month, the ABS said the $11.8 billion in lending to investors represented growth of 3.2 per cent.
If you have been thinking about buying for a while – but have been concerned about tougher lending policies, please get in touch – you may be pleasantly surprised.