More lending changes ahead

Ever since APRA capped investment lending growth at 10% for all lenders in 2014, there have been plenty of pricing and policy changes. Some lenders have lowered the maximum loan-to-value ratios for property investors, while others have removed their discretionary interest rate discounts. Meanwhile, others have lifted the pricing across their suite of investment products. Most recently, the largest lenders increased their interest-only pricing for owner-occupiers and investors by 0.35%-0.4%.

All this has made the mortgage market more complex than ever. The question now is: have we seen the end of the rate and policy adjustments? The short answer is: we can expect a lot more changes. Lenders will continue to tweak their policy and pricing in line with their appetite for business.

Interestingly, data from our latest annual investor survey found 51.5% of Australians believe further changes will force potential investors to sit on their hands over the coming 12 months.

That said, it is important for investors to note that now is still a great time to look at their options.