Recent changes in the market may be making investment loans for property in Perth harder to obtain. Mortgage brokers in Perth are scrambling to adjust to the recent changes. We believe it is more important now than it has ever been to choose the right mortgage brokers when you are looking for investment loans in Perth.
We can’t get into specifics because there are so many variables, but the bottom line is that many lenders, led by the big four, have tightened up their requirements for investment property loans. This can make a loan tougher to obtain, more expensive or both.
According to Felicity Emmett and David Cannington, economists for ANZ Bank, these changes may have what they call a “marginal softening impact” on the housing market, both in prices and total sales.
Most observers feel that the recent changes were inspired by Australian Prudential Regulation Authority’s (APRA) efforts to lessen the effect of property speculation on the housing market. In December 2014, lenders were warned by the APRA that an increase by more than 10% per year in investment loans would not be tolerated.
Moody’s, a credit rating agency, is on board with the edict because it reduces the exposure of banks to what they see as “high-risk” loans. Unofficially, banks appear to already be decreasing their investment loans. While debt associated with investor loans increased 12.4% in March, a seasonal adjustment puts the rate at an annualised pace for 10%, which is in line with the target number.
What it Means to You
If you are looking for investment loans to increase your portfolio in the Perth area, it is more important than ever that you find a mortgage broker who specialises in investment loans. At Purely Finance, we specialise in investment planning and investment property. We can provide you with the right plan for you and the loans to execute that plan.
To learn more, call us today: (08) 9453 8888.