The amount of lending changes is mind boggling at the moment.
Here is a summary of what has changed that further reinforces the need to use a broker like Australian Mobile Finance Solutions:
THE BAD NEWS
1) Interest rates for loans for property investors have been increased across the board due to APRA (government) intervention to slow investment property loan growth to 10% or less
2) A tightening of Bank policies for property investors with lenders now adopting benchmark living expense figures, discounted rent returns and sensitizing of all loan commitments. What could have serviced with XYZ Bank a month ago now will not pass their guidelines
3) Interest only lending whilst Ok for investment lending is being capped at 80% loan to valuation ratio by some lenders. Also interest inly lending for owner occupiers is being pulled back
4) Reduced number of lenders who will go over 95% of the property value plus Lenders Mortgage Insurance (LMI)
5) Variable and fixed interest rates for investors have been increased especially those with an interest only repayment
THE GOOD NEWS
1) introduction of some very competitive interest rates for owner occupiers and first home buyers
2) Some Banks will actually pay the customer a refinance rebate to switch as much as $1200 in some cases
3) As a broker we have access to additional pricing discounts with most lenders. We recently saved a customer $4700 per annum in interest – with her current lender!
3)As a broker we still have access to other reputable lenders that still have competitive interest rates for both home owners and investors.
4) We get paid by the lender
5) We come to you!
Call Scott on 0450968760 for more information.
