Why is the Rate on My Investment Loan Increasing?
You may have noticed over the past few months that lenders are becoming stricter with investment lending. The Australian Prudential Regulation Authority (APRA) regulates banking policy and APRA has required that lenders tighten their investment lending policies in a bid to prevent or slow an overheated property market. Some lenders have responded by increasing interest […]
Getting Prepared for Rate Rises
The Reserve Bank of Australia (RBA) hasn’t announced any changes to the cash rate for a year now, leaving the rate at a steady 1.5 per cent, with most lenders keeping rates low too. However, there is talk in the market of of rate rises in the near future, so it’s best to be prepared […]
How is My Borrowing Capacity Worked Out?
Up until recently, it was relatively easy to apply for a home loan. As long as you could show that you have a stable job and manageable debt, then your application had a good chance of being approved. However, things have changed considerably over te past two years. Despite interest rates remaining low, lenders have […]
Restrictions on Interest Only Loans for Investors – How Does This Affect You?
Investors are facing a tough time with lenders at the moment as investment loans are becoming more restricted. In March, the Australian Prudential Regulation Authority (APRA) wrote to lenders, instructing them to keep new interest-only loans to just 30 per cent of their total home loans portfolio. This is to limit the volume of higher […]
Is Now a Good Time to Fix My Home Loan?
Interest rates are at a record low and there is no way of knowing how long they will remain this low. A lot of people are reviewing their home loan to take advantage of these low interest rates and fixing their home loan rate to provide certainty in the future should interest rates begin to […]