People buying the roof over their own heads are fast becoming the favourite customers of the nation's lenders following the tightening restrictions on investment loans over the past few months.
In July the Australian Prudential Regulation Authority (APRA) spurred massive interest rate increases for investor loans across Australia's lenders. Before this APRA had put a 10% cap on the amount of lending banks could dedicate to investors.
The result of these restrictions has been that lenders have had to compete for their other major borrowers: owner-occupiers.
The result of these restrictions has been that lenders have had to compete for their other major borrowers: owner-occupiers.
Over the past few months owner-occupier borrowers have seen consistently low interest rates. Some lenders have even dipped as low as 3.99% on principal and interest loans.
The changes to investor interest rates have been put in place to slow the growth of the booming markets of Melbourne and Sydney where property prices are soaring.
While in these booming markets it is still extremely expensive to purchase property regardless of whether you are an owner-occupier or an investor, in other capital cities such as Brisbane home-buyers who plan to live in the home they're buying are given the opportunity of both low interest rates as well as reasonable house-pricing.
These opportunities may not last forever so if you are looking to buy your own home get in touch with a All About Loans to take advantage of the current home-loan climate.
Oh, and by the way, despite APRA's restrictions we still have some competitive deals for investor borrowers, with rates as low as 4.13% pa. (Comparison Rate 4.27% for loans over $500,000, and Principal & Interest Repayments). Or 4.18%pa. interest only….
Call 0732525208 to receive free advice on your lending options!
Don Farquharson,
Loan Solution Expert
Owner & Principal Lender of All About Loans
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