The Money Is Still Flowing

Despite recent changes to investor lending introduced by the banks, many borrowers can still get a loan – and at great rates.

Prompted by pressure by the Australian Prudential Regulatory Authority (APRA), many lenders are reducing the amount they will lend to investors.  However, a buoyant property market, combined with a competitive banking system, means that there are still lenders who offer:

• 95 per cent of a property’s value
• 85 per cent of a property value without requiring Lenders’ Mortgage Insurance
• Low- doc loans up to 85 per cent of a property value
• 12 month real pre approval for off-the-plan purchases
• No postcode restrictions on a property’s location

And lenders are still competing aggressively for your business – one is even offering an interest rate of 3.99 per cent.

This week, AMP Bank also announced that they would pay $1,000 for owner occupiers to refinance with them.

With tentative signs of a moderation in hot property markets investors, armed with low rates, may well be able to make the acquisitions on their wealth creation plan.