Thanks to Australian Prudential Regulation Authority (APRA) regulations, real estate investors are finding it even more important than it has ever been to have a top-notch loan broker on their side. In Rockingham and across Australia, business finance for real estate investors is at an eight-month low as of the October 2015 statistics provided by APRA.
Last December, the APRA announced a “guideline” for banks, capping investment lending at 10% annual growth. In the twelve month from November 2014 to October 2015, investment lending grew only 4%: well below the 10% “suggested” by APRA.
According to APRA, only one of the four major banks failed to cap investment lending growth at 10%: the National Australia Bank (NAB). NAB recorded an annual growth of 12%. Meanwhile, Westpac decreased by 8%, Commonwealth Bank of Australia (CBA) increased by 6% and Australia & New Zealand Banking Group (ANZ) increased lending by 7%.
Meanwhile, lending to owner-occupiers rose by 11% over the year.
Why This is So Important to Investors
While this is still growth and it might sound good, it is making it more difficult for many investors to obtain loans. The banks are beginning to require higher deposits for both investment and owner-occupier loans, making market entry more difficult for many. They are tightening up their standards to keep their numbers down and comply with APRA guidelines.
Why You Need a Great Loan Broker
It is now extremely important to have a great loan broker like those at Smartline Rockingham. We go out of our way to stay on top of what every lender is doing: how they are changing their standards, what profiles tend to be accepted and what tend to be denied. Since each lender uses slightly different standards, we are able to match investors to the lenders most likely to provide home loans at reasonable terms and prices.
Need an Investment Home Loan? Call Smartline Rockingham
To learn more or to apply for a pre-approved loan, call us today: (08) 9527 1800.