AS SEEN IN THE DINGLEY DOSSIER
Borrowers beware, banks are yielding to regulatory pressure via APRA, and the ‘rules’ are changing dramatically!
Changes will impact all those taking out a property mortgage, however investors will be impacted most, with all 4 major banks now penalising investor loans over owner occupier loans. The changes, which vary bank to bank, include removal of special discount pricing for investors, limits on loan-to-valuation ratios for investment lending, and special discount rates available for loans with principal and interest repayments.
Significant changes have also been made to some loan-servicing calculators, decreasing the amount a bank may be prepared to lend to many customers. This may cause some major issues with, for example, property purchasers who may have purchased off the plan being put into a position of no longer being able to obtain finance to settle. Any potential borrower who has had their ability to borrow checked previously but is still looking to purchase should also have this looked at again to ensure they are not negatively impacted.
This saga has re-enforced the advantages of using a finance broker. At Integrity Finance Australia we have been able to be pro-active in ensuring our clients are aware of these issues. We are also able to identify and keep on top of the changing market.
Now more than ever there are major differences between the lending institutions. Just because one bank says ‘no’ does not rule out all banks. Just because you have a transaction account at one bank does not make that the best bank for your loan.
More than 50% of all residential mortgage loans in Australia are now transacted via brokers like Integrity Finance Australia. With no cost and significant benefit to the consumer that percentage continues to grow in line with increasing public awareness of the benefits of using a reputable broker.
Are you with the majority using a professional finance broker yet?