Invest
Property investment playing field has ‘changed permanently’
The Australian real estate playing field has “changed permanently” thanks to lending restrictions, meaning investors will always pay a little more.
Property investment playing field has ‘changed permanently’
The Australian real estate playing field has “changed permanently” thanks to lending restrictions, meaning investors will always pay a little more.
That’s according to Rate City spokesperson Sally Tindall. She told Nest Egg the Australian Prudential Regulation Authority’s (APRA) pending removal of the 10 per cent investor lending speed-limit means interest rates on investor loans could be reduced but potentially only to new borrowers.
This is because the APRA speed-limits have worked to slow down investor lending and lenders will be required to continue scrutinising loans and applying tighter lending restrictions.
“I do think on the one hand, banks will move to reduce investor rates in response to Thursday’s announcement, but I also think that they are putting in place a lot more serviceability criteria; they're ramping up who is eligible for a loan and who isn't.
“So, we're never going to go back to those days when owner-occupiers and investors were getting the same rate, and that's because investors are ultimately higher risk borrowers. The playing field has changed permanently where investors will always pay a little bit more.”
With this in mind, she urged property investors to review the interest rates they’re paying and consider refinancing if their rate is uncompetitive.
As for prospective investors, her advice is to “have your ducks lined up in a row”.
“The most important thing to understand is that the banks are scrutinising every loan application far more,” she said.
“Make sure you've got a decent deposit, make sure that you're factoring in a 2 or 3 per cent interest rate increase onto your mortgage repayments, tick all the boxes because you will save in the long run by having a well-structured, well thought-out home loan.”
While the 10 per cent investor lending growth limit will be removed, provided lenders meet APRA’s requirements, there’s little likelihood the 30 per cent cap on interest-only lending will go the same way, she added.
“APRA has made no indication about moving it, they've said the reverse; they're going to keep it.
“Over time they may decide to remove it or reduce it but it certainly looks like they're not going to touch on it anytime soon.”
RELATED ARTICLES
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
