First home buy­ers in bind over bank deals

Mercury (Hobart) - - NEWSFRONT - ANNABEL HEN­NESSY

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.

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