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Has it just become harder to buy an investment property?

Has it just become harder to buy an investment property?

You may or may not have heard about the recent crack down on investment lending. Many of the banks have been pressured by regulators to reduce their lending to investors, in an attempt to cool the currently overheated property market.

Some lenders have brought in restrictions  whereby they will only allow investors to borrow 80% of their intended property price. But don’t despair, not all banks have taken this approach.

Others have reduced the discount available on interest rates for investors – meaning you could have a loan for your owner occupied property with a much lower interest rate than what you may have for your investment property.

Other measures include altering the calculations used to determine how much you can borrow, such as no longer factoring in negative gearing benefit into the banks calculations when determining your income and expenses.

As always, every bank has different policies to navigate and seeing an experienced finance broker whom keeps up to date with all the banks latest policies is the best way that you can keep abreast of this yourself.

If you would like to know more about how investment lending changes could affect you, contact Bee Finance Savvy on 1300 140 554 or email us at enquiries@beefinancesavvy.com.au

So don’t delay, find out today whether you are still eligible to purchase an investment property, now or in the near future. We won’t charge you anything to run an analysis on your borrowing capacity, and help determine which lender is best suited to you!


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