First home buyers in bind over bank deals
BANKS have been accused of undermining efforts to cool the property market.
Housing affordability lobbyists say major lenders have ramped up efforts to target investors months after a banking regulator crackdown on investor lending.
Commonwealth Bank, ANZ and Bankwest have all slashed rates in a bid to lure investors in the traditional spring property season, sparking fears first home buyers will again be pushed out the market.
First Home Buyers Australia director Taj Singh warned the moves could reheat Sydney’s property market and lead to an investor domination.
“We had seen a bit of an investor slow down, which was giving first home buyers a chance,” Mr Singh said.
“But this could make them come back and push first home buyers out again. Spring is when the most property is bought and sold, but it could be a bad time for first home buyers.”
CBA said it encourages customers to choose loan structures that will repay both principal and interest as borrowers would then own their homes sooner.