In response to the growing percentage of investor-owners in the Australian property market over recent years, some lenders have now introduced a discount of an additional 15 base points to owner-occupier borrowers.
With 50% of the overall mortgage market in Sydney now taken up by investors, it is becoming more and more difficult for first homebuyers and owner-occupiers to get a foothold in the property market. This special offer will generally apply to owner-occupied full-doc loans with 80 per cent LVR or lower, and will open up the market further to non-investor buyers.
This discount for owner-occupiers signals the start of price differentiation in the Australian mortgage market, with a home loan interest rate based on different factors and reasoning behind the purchase of the home. The policy could see an increase in the cost of property to investors, compared to owner-occupiers.
In a market saturated with investors from Australia and overseas, lenders are making changes to achieve a balance between owner-occupiers and investors within the Australian housing market.
At Launch Finance, we have built a strong network of lenders and will put you in touch with the most suitable lender for your venture, whether it is for an investment property purchase or for purchasing your own home. Contact Launch Finance today.