As we are well past the middle of winter, there are signs that the sizzling hot residential property market is slowing. From mid-June, at the request of finance industry regulators, many lenders introduced tighter policies. In addition, higher capital requirements imposed on major banks for investment loans have led to increased interest rates.
How will policy changes impact a current or prospective borrower?
1. The amount lenders are prepared to provide may be reduced. You may need to save a higher deposit or reduce your loan amount.
2. Your capacity to repay the proposed loan may be reduced. Some lenders now have tighter income policies which may reduce your borrowing capacity.
There are solutions!
Uncertain economic times often result in tighter lending policies. However, in most cases there are solutions available together with ways to offset the risks of rising interest rates and repayments.
With direct access to over 30 lenders we can do the hard work for you to find a solution that meets your needs.
If you are considering applying for home or investment property finance please get in touch and we can have a chat and find the right solution for you.