Invest
Property investors should stay positive about borrowing
Changes to how lenders are allowed to loan money to investors have made borrowing more difficult and more expensive, but if the property is right for the investors they shouldn’t be dissuaded.
Property investors should stay positive about borrowing
Changes to how lenders are allowed to loan money to investors have made borrowing more difficult and more expensive, but if the property is right for the investors they shouldn’t be dissuaded.
A number of major lenders in the market have reduced their lending value ratio to 50 per cent as part of a move to constrain investing, and the gap between the interest rate on interest-only and principal and interest loans is now large enough to offer as much as a 70-basis point saving depending on the lender, according to James Grima.
Mr Grima, a managing partner for mortgage and finance at Omniwealth, said these changes “are making it more difficult for borrowers to refinance their loans”, especially for those seeking interest-only repayments.
“There is not enough financial incentive for these clients to change lenders unless they opt for principal and interest repayments,” he said.
However, Mr Grima said investors shouldn’t be put off buying a suitable property despite the increasingly difficult borrowing environment.
“On the positive side, lenders are offering very attractive rates, fixed and variable, for principal and interest loans secured by owner-occupied property,” he said.
“The interest rate difference between interest-only and principal and interest-only loans is approximately 30 basis points and for this reason, an increasing number of clients are choosing to change their repayments to principal and interest.”
RELATED ARTICLES
-
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
-
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
-
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
Property
Victoria’s $100m renter support push: what it means for landlords, proptech and the housing economy
Victoria has unveiled a new suite of rental support services, including a dedicated helpline for renters aged 55+, underpinned by a funding package widely reported at around $100 millionRead more
Property
The multigenerational home moves mainstream: where the next margin lives in Australian real estate
Multigenerational living is shifting from edge case to core demand driver in Australia’s housing market. For agents, developers and lenders, the commercial upside lies in rethinking product design, ...Read more
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
Property
Victoria’s $100m renter support push: what it means for landlords, proptech and the housing economy
Victoria has unveiled a new suite of rental support services, including a dedicated helpline for renters aged 55+, underpinned by a funding package widely reported at around $100 millionRead more
Property
The multigenerational home moves mainstream: where the next margin lives in Australian real estate
Multigenerational living is shifting from edge case to core demand driver in Australia’s housing market. For agents, developers and lenders, the commercial upside lies in rethinking product design, ...Read more
