The Australian Prudential Regulation Authority (APRA) who oversees and regulates banks have placed restrictions to investor lending and have tightened this space.
Their concern is that property investment lending is doubling its growth each year (about 21%) against the advisable growth of 10%. APRA is concerned by the significant growth in the number of investment loans and advised lenders they need to take steps to limit it.
In response, lenders are tightening their lending criteria for investment borrowers.
A separate newsletter detailing the above was sent to all our clients in an email this morning.
Some of the changes include:
Yesterday, AMP made a decision to cease all new investment lending until further notice.
Other lenders like NAB and ANZ are intending to increase their existing investment loan interest rates slightly.
This action by APRA does not affect owner-occupied home loans.
The lenders in the last few days have been sending us communication with the proposed changes and I shall be sending each of yourselves that have existing investment home loans, a summary of changes applicable to yourself.
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