Australia’s lending environment has been a rapidly shifting landscape over the past four years. While cash rates have come to an all-time low, APRA have initiated various restrictions to cool Sydney’s strongly performing housing market. The banking watchdog introduced new prudency restrictions in 2014, reducing the growth of investment loans to 10% per annum. Effectively, these actions encouraged new lending guidelines for banks, which has left some hopeful borrowers unable to secure finance. The big four banks (NAB, CBA, ANZ and Westpac) were forced to include limitations on serviceability, giving borrowers new hurdles to clear in hopes of securing loans – leading home buyers and property investors alike with the question:
0 Comments