Easier access to Lending - banks ease test rates and open doors to new customers

In recent weeks, banks have reduced their Servicing Test Rates resulting in more prospective borrowers being able to meet the criteria for borrowing than was possible in recent months/years gone by. 

3 of the 4 main bank lenders have tweaked their servicing test rates or other aspects of their servicing criteria in recent months and it has enabled a large number of borrowers that had been declined/not qualified for lending previously to now pass the affordability test for lending.

90% lending for new to bank first home buyers with live contracts is also again being offered again by some lenders (rarely available to new to bank customers in recent months) and matching of rates and cash is also standard practice.

In summary, activity is increasing, rates are predicted to reduce further and in line with this, lenders have eased the rates used to assess affordability. 

More lenders are open for high LVR business, healthy homes standards are pushing more buyers toward new builds and yields are increasing across the board as rents increase as a result of additional costs incurred from said Healthy Homes Standards AND as a result of ongoing Demand and Supply disparity.

Economic instability domestically and internationally suggests that there is little pressure to change the monetary policy direction in play and despite a slowing in immigration, there is little suggestion that pent up demand will be satisfied anytime soon – hence, irrespective of negative economic indicators, residential property investment is in vogue with the old and the new (younger investors) and it’s predicted it will become a further focus of the older generation given there is little if any return from asset classes traditional in the retirement years.

Have you reviewed you lending and lender?

Probably time you did.

Call me, I’d love to help you take advantage of this moment in time..

Paul 021 615907