Proposed Changes to borrowing for Investment Purposes.
Talking personally as investor, being “Prudent” & “Conservative” is a personal style which suits exactly how I like to operate. When I purchase or speak to clients, having a stable growth based investment is everything.
Lately in the media, there has been a reasonable concern with lenders changing their credit policies for investors. This is due to the APRA (Australian Prudential Regulation Authority) having a concern over the percentage of investment loans currently being written.
This means that Investment Loans could be impacted in the following manner:
1) Restricted LVR to less than 80% (or lower).
2) Increase in servicing rate for investors.
3) Removal of negative gearing in the servicing calculator.
4) Reduction in discounts for investors.
These are general points and different lenders (based on their funding sources) may be impacted differently.
If you are in the process or about to start buying more investment properties, feel free to call me anytime. I am more than happy to give you more insights & updates to the potential industry changes going down.