Despite recent changes in the property investor market, with banks restricting giving investors loans, it is not all doom and gloom for people looking to buy a home or even refinance their existing loan.
Basically, a lot of the banks’ current loan portfolios have a higher percentage of investment loans than what the regulator (APRA) wants to see. Consequently the banks are now making loans far less attractive to investors by offering higher rates than for owner occupied loans. In some cases it is virtually impossible to get investment loans.
You may be wondering why this is making it more attractive for people seeking owner-occupied finance, whether it is for new loans or refinancing existing loans – well here comes the good bit! The banks want your business as any new loans they can secure helps them reduce their portfolio ratio against their investment loan book!
To entice new customers, there are currently a number lender offering cash-back incentives to any new loans for owner occupied properties! These range between $1,000 and $1,500 which is not to be sniffed at!