06 Aug Banks tightening lending criteria
A few changes in the lending had occurred lately. One of the most significant change has been the tightening of lending criteria by various banks and lenders for investment properties. For example:
• ANZ has reduced the maximum Loan Valuation Ratio (LVR) for investment loan to 90% inclusive of LMI and review its serviceability standards
• CBA has announced that for all new investment home loan applications, negative gearing will not apply when the LVR is greater than 90%. In addition, a new servicing loading of 20% will apply to all repayments on existing CBA Home/Investment Home Loan and Lines of Credit.
If you have a pre-approval granted by a lender before June 2015, it might be worthwhile to review again if that pre-approval is still valid, as lending criteria might have changed towards the end of the last financial year.
Speaking about the end of the financial year, other than lodging the tax returns and hopefully getting some money back from ATO into your bank account, have you thought about conducting a review of your existing borrowings and potentially save more money on the interest and pay off your loan sooner?
Please feel free to contact us at [email protected] or 0488 814 148 for a FREE, no obligation consultation.