If you have listened to any news lately, you would be well aware that there have been many changes in the Investment Lending world. One major change is Lenders have been restricted to how much they can grow their investment portfolio year on year, and they face large penalties from the regulator if they do not comply.
They are actively trying to slow the Investment Market in some of the Southern Capital cities but the changes are affecting Investment Loan nationally. You may have noticed that your variable rates have risen outside of any RBA movement and that likely your Interest Only loans are now attracting a higher rate.
Each Lender is interrupting this new legislation slightly differently and hence have all taken a different approach on what is expected of them to comply. What this has done is create a very volatile and constantly changing market for investment Lending.
What it means to you as the holder of an Investment loan? It is now more important than ever to have a look into your current loans & structure. Whether that means, switching lenders, products, fixing or switching to Principle and Interest or just seeing if we can get your current rate down with your existing lender.
I would recommend that you spare 30 mins to come in and see me to make sure you have not got the raw end of the deal with the new changes. As your broker, my Service is completely free to you as I work for you and not the Lender. Your Investment Loan is undoubtable your biggest expense with your Investment property but is something that most people give little thought to and just ‘assume’ that their lender is doing the right thing by them. Please remember, just because you had a ‘Dollarmite’ account as a kid and that you have been with your Bank for 30 year, it doesn’t at all mean that you are getting looked after!!!
If you would like to pop in and see me, please feel free to call me on 0417139897 to arrange a time.
Senior Mortgage Broker/Director
Loan Market Darwin