The Reserve Bank implemented a policy two weeks ago that has given the lending world a big shake up.

 

Banks were directed (by APRA – The regulator for the financials services industry) to restrict growth in investment lending to 10% per annum. Some Banks have raised investment rates, some now require bigger deposits and some favour P&I over I/O.

 

The Reserve Bank is going to keep rates low (and possibly lower still) but would like to slow the speed in investment lending without curbing owner occupied lending.

 

What does this mean for you – variable interest rates are now anywhere between 4.15% and 4.99% depending on - owner occupier or investor, P&I or I/O, deposit size, and loan size.

 

·       This has NO IMPACT on existing loans – just new ones

·       First Home Buyers or people relocating are being encouraged

·       To the serious investor, this won’t impact on you either – we will find the best fit and factor in the cost to your calculations

There is no question that I am now using quite different lenders to a month ago …Lending is more complicated than ever – but I am here to guide you through.

 

And on Greece? The debt problems in Europe are significant and will take a long time to play out, it may affect you in two ways.

 

·       European travel may be cheaper (or not) depending on what happens to the Euro

·       Europe is a definite factor in interest rates staying lower for longer in Australia

 

Call or Email me anytime… It’s what I’m here for… 0411 601 459

Alan Heath

Principal, Mortgage Choice, Brisbane CBD