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Investor Home Loans Tighten

Posted: May 20th, 2015 | Author: | Filed under: Australian Home Prices | Tags: , , , , , | Comments Off on Investor Home Loans Tighten

Investor home loans tighten as regulator APRA clamps downLending for investment properties appears to have suddenly tightened, as the banking regulator’s efforts to rein in the sector appear to be succeeding.

Mortgage brokers are reporting credit conditions in Australian housing lending market have become a lot tougher in the past two weeks according to CLSA’s leading bank analyst Brian Johnson.

Mr Johnson said recent discussions with broking contacts pointed to banks cutting discounts on investment loans and demanding tougher scrutiny on borrowers’ ability to repay their debts.

The crackdown comes only days after data was released showing mortgages had soared to a new record high of $31.3 billion in March.

Lending to property investors is now growing at 21 percent year-on-year, more than double the so-called speed limit of 10 per cent identified by the Australian Prudential Regulation Authority – APRA – earlier this year.

Anecdotal evidence is that NAB, Commonwealth and Westpac investor loans will no longer offer additional discounts over and above the published ‘package discount’ rate :: Read the full article »»»»