The Australian banking environment has changed substantially over recent years. There has been an unarguable tightening in credit, which became even more restrictive following the Banking Royal Commission, along with a potentially related slowdown of housing lending during 2019.
As a result, many lenders have found that their sales activity and lending portfolio growth has subsided – meaning that the competition for new good quality loan opportunities is as fierce as we have seen in recent times. Continue reading Banks are paying home loan borrowers for their business!
There is no doubt that Banks and other Lenders within the Australian home loan market have tightened their lending standards over the last 12 months. This tightening is having a significant impact on the borrowing capacity of many Australians looking to obtain a Home Loan.
However the good news is that with some focus and financial management you can still present a strong case on your borrowing capacity to the Banks.
The below provides some tips on how to maximise your borrowing capacity. Continue reading Home Loan Tip: How to increase your borrowing capacity
Over recent months it has been very noticeable that banks have been increasing interest rates and tightening credit policy for interest only loans, regardless of whether they are for Investment or Owner Occupation.
The appetite for interest only lending has diminished significantly and through pricing and policy banks are encouraging borrowers to consider principal and interest repayment options. Continue reading Interest Only Loans – Time Bomb or Hiccup?
In mid 2015 we highlighted through this Blog that Banks were tightening credit policy in regards to investment lending and that had resulted in tightening of lending criteria.
This was initially due to communications from APRA to all Approved Deposit-taking Institutions (ADI’s) about expectations of a range of measures to reinforce sound residential mortgage lending practices. An ADI is basically a bank, credit union or building society. APRA’s expectation was that ADI’s maintain growth in investment lending portfolios to below 10%. Those communications quickly lead to Bank’s: Continue reading Investment Loans – Banks tighten loan criteria
Over the last couple of months we have seen an ever increasing level of lenders tightening credit policy around investment lending.
In essence our banking regulator, APRA, has flexed its regulatory muscle to try and control the level of growth in investment lending.
So why the increased regulation? Continue reading Lenders tighten investor lending policies