The Australian Bureau of Statistics (ABS) released data this week which showed that investor lending is increasing.
The ABS’ housing finance data for June 2016 showed that the value of housing finance commitments was recorded at $32.6 billion which was the highest value since August 2015 but still -2.1 per cent lower than its record high of $33.3 billion in April 2015.
However, the major change was that investor borrowing is starting to grow again. The $11.8 billion in lending to investors was 3.2 per cent higher over the month, -13.1 per cent lower year-on-year but at its highest level since August 2015.
Most banks tell C&N Finance brokers that they are comfortably within the government’s hurdle of a maximum 10 per cent growth in investment lending and consequently they are being more generous with investor loans.
This week, AMP announced a structure where investors can get owner occupied rates – but it is only available through brokers.
For further information, contact your Chan & Naylor Broker.
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