Your Loan Approval May Not Be Worth The Paper It Is Written On

Doug Daniell Uncategorized Leave a Comment

Over the past few days the banks, prompted by regulators, have made it more difficult to get an investment loan. So, you may want to get a second opinion on whether your loan approval still stands.


Here is what has happened

Prompted by pressure from the Australian Prudential Regulatory Authority (APRA) to limit property investment growth to 10 per cent per annum, the banks have announced new lending policies which will make it just a little tougher for investors to get a property loan.


All banks have announced different policies, but here are some examples of what has happened



  • Westpac only takes into account 60 per cent of rental income when assessing an some applicant’s income
  • NAB no longer discounts interest rates for investors
  • Bankwest now only lends up to 80 per cent of the value of an investment property (was 95 per cent)
  • AMP no longer accept all of rental income when assessing an applicant’s income
  • Macquarie has introduced tougher lending standards



What it Means

If you are currently looking to buy an investment property and (believe) you are armed with a bank pre-approval, it may no longer be valid.


What Should You Do

Contact your me immediately to double check how much you can borrow


Bank Manager

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