Finance: The Ice Melts

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We all saw the headlines in 2015 – prompted by government pressure, the banks are making it harder to get finance.

But, now there are some tentative signs that getting finance may be coming easier.

Last year, the Australian Prudential Regulation Authority (APRA) told the banks that they had to limit their annual growth in investment home loans to 10 per cent.  As a result, the banks made it tougher to get investment finance.

But now, there are tentative signs that APRA’s 10 per cent hurdle has been met and that the banks are becoming more generous to investors.

At one point, AMP completely pulled out of investment lending, but is now back in the market.  Similarly, banks that were making things much tougher for investors have now loosened the reins; NAB announced through its broker-only channel, some discounted investor rates last week.

Investment lending changes by the minute.  Stay close to your C&N broker to understand what is going on.

 

Graeme Salt

Graeme Salt

Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.

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