You may have heard about recent changes to major bank policies and interest rates etc. These are big changes that are affecting buyers and investors all over Australia.
Basically APRA (Australian Prudential Regulation Authority) has said “Whoa Girl!” – they have big concerns about the growth in the major banks investment portfolios, and accordingly have either made it more expensive or waived a big stick to make sure that the banks to operate safely within their guidelines in that market.
The major four banks have been impacted the most due to the way they are regulated as opposed to the smaller lenders.
This has impacted what the interest rates are that they offer to clients both in terms of higher loan value loans (5% deposits) and also for investors. One bank for example has over 48 different rates on their variable loans depending on whether you are a home owner, investor and what deposit or equity you have.
This is a very general brief of what has happened – but in the end, what it has done is make it harder for the average person to know where they sit – and also more difficult to determine who is providing a better deal without a whole lot of painful discussions with a few banks/lenders.
So Professional Mortgage advice is now more important than ever. With more selection and knowledge we can often source a better solution – and save you time and maybe a lot of dollars long term.