The Australian Government is forcing banks to put on the handbrake for investment lending.
A recent crackdown by the Australian Prudential Regulatory Authority (APRA) to curb investment lending has caused the major banks to review their lending policies for borrowers purchasing or refinancing investment properties. This comes in response to the rapid increase in investment lending particularly in Sydney and Melbourne that has caused house prices to skyrocket.
Here’s how the big 4 banks have changed their standard variable rates for investors.
|Lender||Standard Variable Interest Rate (Old)||Percentage Increase||New Rate for Investors|
|Commonwealth Bank||5.45%||0.27% ↑||5.72%|
|National Australia Bank||5.46%||0.29% ↑||5.75%|
|ANZ Bank||5.49%||0.27% ↑||5.76%|
Non-bank lenders are set to win as major banks scale back on investment lending.
Smaller lenders are looking to capitalise on the share of the investment lending market, as the bigger banks move to focus on owner occupied lending. Small lenders and non-banks are now seizing the opportunity to grow their investment loan books by providing competitive rates in order to entice borrowers to make the switch from the big 4.
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It is important to note, that lending policies differ from between lenders. Take the pain out of comparing home loans and let the money saving experts at SwitchMyLoan do it for you. Click the button below to make a free enquiry today or give the friendly team a call on 1300 307 155.Get the best rate today