Invest
Lending restrictions affecting investor property plans
Restrictions applied to investment lending are having a notable effect on investors’ plans, a survey has found.

Lending restrictions affecting investor property plans
Restrictions applied to investment lending are having a notable effect on investors’ plans, a survey has found.

The annual Investor Survey by mortgage broking firm Mortgage Choice revealed 42.6 per cent of investors said that new lending restrictions impacted on their property investment plans, an increase from 33 per cent the previous year.
“This finding does not come as a surprise when you look at the current environment we are in,” said Mortgage Choice CEO John Flavell.
“Over the past couple of months, we have seen a number of Australia’s lenders introduce a raft of changes in relation to investment lending. Some lenders have changed their policy, making it harder for would-be investors to qualify for a loan, while others have modified their pricing by lifting their interest-only home loan rates.
“These changes can be largely attributed to the Australian Prudential Regulation Authority’s (APRA) decision to crack down on investment lending.”
The changes, Mr Flavell said, were made in March of this year to restrict interest-only loans to 30 per cent of new residential mortgage loans.
“As our data shows, this spate of investment lending changes are starting to affect property investors,” he said.
Some investors are forced to look beyond their traditional lender in order to obtain finance, while others are choosing to reassess their intentions to buy a property and/or put their plans on hold indefinitely.”
The survey also revealed 51.5 per cent of respondents believe these restrictions will slow down investor activity over the next one to two years.
“In light of the current market and all the changes taking place, I am not surprised to hear that the majority of Australians believe investor activity will drop over the coming 12 months,” Mr Flavell said.
“Australia’s property market has become increasingly complex in recent months. In my 25 years in the finance industry, I have never known the mortgage market to be this complex and confusing. But while there are a lot of changes afoot, there are still plenty of opportunities for investors.
“There are still a number of lenders in the market who are happy to write investment loans and are hungry for this type of business.”

Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more

Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more

Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more

Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more

Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more

Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more

Property
6 key indicators to heed when buying your next investment property
Self-proclaimed data nerds Arjun Paliwal and Kent Lardner have shared their six must-know indicators when researching your next investment property. ...Read more

Property
RBA admits low interest rates will boost cost of housing
The RBA has confirmed that it is closely monitoring the impact of low interest rates on the level of housing loan commitments and acknowledged the “inherent” risk of soaring asset prices in the ho...Read more

Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more

Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more

Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more

Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more

Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more

Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more

Property
6 key indicators to heed when buying your next investment property
Self-proclaimed data nerds Arjun Paliwal and Kent Lardner have shared their six must-know indicators when researching your next investment property. ...Read more

Property
RBA admits low interest rates will boost cost of housing
The RBA has confirmed that it is closely monitoring the impact of low interest rates on the level of housing loan commitments and acknowledged the “inherent” risk of soaring asset prices in the ho...Read more