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How do the lending changes affect you

How do the lending changes affect you?

Recently there have been changes in lending policies with many of Australia’s leading banks. The majority of changes effecting investors, there have been some general changes that will have an impact on buyers also.

The changes range from higher interest rates, increased deposit required and tougher criteria needing to be met to qualify.

How will these changes affect you?

Most of the changes work to reduce the number of potential borrowers, particularly investor. For example lenders are imposing tougher criteria to qualify, when completing an assessment they’re increasing servicing requirements. This stress test shows whether or not you can easily make mortgage repayment in today’s market as well as when interest rates rise. They do this to ensure you won’t default when interest rates rise.

For the investor…

Whilst most of the changes won’t have a huge impact on owner occupiers, the changes will have a significant impact on investors. Some lenders have reduced their maximum loan they’ll lend to investors, now only lending 80% of the value of the property. This may have a big impact on off the plan property purchasers.

Whilst this may not affect all investors purchasing off the plan, it’s wise to speak with your bank or mortgage broker to see if the changes will impact you.

Changing environment

With so many lenders making so many changes to their lending policies, the home loan market has become more complex than ever before. As such, it may just pay to speak with a professional.

At Hunter Galloway – Home Loan Experts, we have access to a wide range of lenders and literally hundreds of products, so we can help you navigate through the current lending changes to find the right lender and loan for your needs. We do all of the legwork on your behalf so that you won’t have to worry about a thing.

Contact us today – Nathan 0410 000 689

For more information on getting ready to purchase and understanding home loans.


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