 | Have you received a letter from your bank putting up your interest rate? Are you considering a fixed rate? Do you currently make interest only payments on your loan? Are you considering switching to P&I repayments to gain a cheaper rate? |
What is actually happening in lending?
Australian government regulators (such as APRA and ASIC) have been keen to ‘slow down’ property investment, due to east coast property market booms.
Banks have therefore made lending more difficult, resulting in investment loans and ‘interest only’ loan repayments becoming more expensive.
Where we had one variable rate, we now have four.
Owner occupiers, paying principle and interest repayments are receiving the cheapest rates. Owner occupiers making interest only repayments are now paying more interest.
Investors making principal and interest repayments are on cheaper variable rates than those just paying the interest – which now has client’s asking about whether they pay down investment debt. (I’m not sure their Accountants would suggest that!)
We are here to help you navigate the changing lending market.
Whether you want to know more about fixed rates, whether paying interest only is still a sound strategy on your investments, and whether there are more competitive offerings in the market place, we are here to help.
Contact our Bank Whisperer Ryan Rawlins to book in an appointment today.
Australian government regulators (such as APRA and ASIC) have been keen to ‘slow down’ property investment, due to east coast property market booms.
Banks have therefore made lending more difficult, resulting in investment loans and ‘interest only’ loan repayments becoming more expensive.
Where we had one variable rate, we now have four.
Owner occupiers, paying principle and interest repayments are receiving the cheapest rates. Owner occupiers making interest only repayments are now paying more interest.
Investors making principal and interest repayments are on cheaper variable rates than those just paying the interest – which now has client’s asking about whether they pay down investment debt. (I’m not sure their Accountants would suggest that!)
We are here to help you navigate the changing lending market.
Whether you want to know more about fixed rates, whether paying interest only is still a sound strategy on your investments, and whether there are more competitive offerings in the market place, we are here to help.
Contact our Bank Whisperer Ryan Rawlins to book in an appointment today.
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