The Australian Prudential Regulation Authority (APRA) has moved to tighten lending practices. Over the last few months banks have been changing their mortgage lending criteria and in most cases without warning. Most changes have targeted mortgage lending for investment purposes. AMP Bank for example has announced that it will not provide funds to property investors. Others are offering loans for investment purposes at a higher rate than for owner occupied and still others have tightened the loan ration (LVR) on investment properties. Many of these sudden changes can create problems for investors – particularly where “off the plan” contracts have been entered into.
There has not been much creativity to the benefit of the clients in the decisions that have been made.
It highlights the danger of dealing directly with a bank and not through a financial services firm such as “GO FORWARD WITH PURPOSE”. It is also a reminder that there are non-banks available for consideration of finance.
There is a product that is very creative and offers significant savings for home owners who are also property investors with an investment loan. Effectively the “Mortgage Down” loan will reduce your home loan interest coasts and enable you to reduce the home loan principal faster.
This is a product which is subject to an ATO Product Ruling allowing you to “TILT” your home loan in your favour with interest rates as low as 2.5%
Don’t miss the opportunity
• STRATEGIC CONSULTING -Finance, Property & Real Estate
• STRUCTURE and correct LOAN and/or LEASE suitable for your PURPOSE
• PROPERTY investment opportunities – make sound property decisions.