I noticed the review of the serviceability brakes APRA places in investors a few years ago is being reviewed. I hope this passes and banks can then stop having higher interest rates for investors vs home owners. Does anyone have any insight to this process?
https://www.apra.gov.au/news-and-publications/apra-proposes-amending-guidance-on-mortgage-lending
Hmmmm. Even with the ‘brakes’ eased, the increasing loan book risk is likely to cause lenders to lower LVRs and increase credit qualifying criteria.
Beyond that, is getting into more debt really the answer? Short term fix for long term pain.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks Steve, agree more debt is not the answer now, but further interest rate relief for investors will allow for potential reductions in rent in order to assist tenants.
Not sure how much lower interest rates can go. And if investors can’t make money where they are now, then there probably isn’t much hope that they’ll do better at 100bp lower.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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