Executive chairman for Yellow Brick Road, Mark Bouris, said he had never experienced such tough borrowing conditions in the Australian market.
This is consistent with the experience of Australian investors, who particularly felt the squeeze last year, when the banking regulator had a cap on interest-only lending.
“It has been an unusually tough six months,” Mr Bouris said, after the release of Yellow Brick Road’s results.
“Sentiment surrounding the royal commission, changes in credit approval processes, more intense regulatory oversight and greater compliance requirements and costs have created significant uncertainty.
“It is now particularly hard for mortgage originators and brokers to assist borrowers to obtain an approved home loan. In all the years of being involved in the home loan business, I have never seen such difficult borrowing conditions. These factors have caused an adverse impact to our new lending, particularly in the December quarter,” Mr Bouris said.
Investors looking for new lines of credit, or to refinance, should be aware of the more stringent conditions lenders are imposing. To read more about how to give yourself the best shot at securing a loan this year, click here.