Apr 29, 2019 |

Investors are welcomed back

Late last month financiers made some positive changes to Residential Investor lending and more importantly – Interest Only lending.

Although not all banks had moved away from or restricted Residential Investor lending – many had. This was on the back of APRAs responsible lending guidelines handed down in 2017. One of the majors – ANZ who took a conservative look at their investment portfolio and restricted lending in that space considerably have now had a turnaround.

  • Interest Only availability for investment lending will be increased to a maximum 90% LVR for new and increased lending. Up from 80%. So, a return to only needing 10% deposit or equity plus costs – inclusive of lenders mortgage insurance.
  • The maximum Interest Only period will be increased to 10 years for investment lending.  Which is now back up from the restricted 5 years previously. Interest rates have also been taking a tumble with the commentary suggesting rate decreases are expected in the short term. How much lower I am unsure as rates are currently at their most historical lows.
  • Financiers are still offering a better rate for Principle and Interest payment loans compared to Interest Only payments.
  • Short to medium fixed rates have recently come down across the board.  With Investors seeing rates on their investment properties (Fixed 2 years P&I payments) as low as 3.88%.

So, with rates at historical lows, market value prices still low, upward movement in the rental market as well as commentary surrounding politics and changes to negative gearing should Labor be voted in – we hope that this should see a flurry of activity for our investors grabbing a bargain while they can!

As we head towards tax planning time before the end of the financial year and if you are considering investment, talk to us at Celsius Finance.  We have all sorts of research information, cash flows and checklists to assist you.

Contact me on 0418 903 954 or donna-lee@celsiusfinance.com.au


warm regards,

Donna-Lee Parkes

Credit Advisor
Celsius Finance