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Investment Property Loans

Investment Loans – Hiking Rates from Comm Bank

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Getting loans for investment properties is going to get a bit more expensive. CBA has recently announced that it will be raising rates on loans for investment properties. Variable rates for investor home loans will go up by 27 basis points bringing the rate up to 5.72 percent.

Investment Loans – Rising Rates

Fixed rates for investor property loans will also be going up. A five year fixed rate loan will go up to 5.04 percent, a rise of 10 basis points. The one, two and three year fixed rate loans on investor homes will be climbing 30 to 40 basis points.

On the other hand, owner occupier home loans have experienced another drop. Fixed rates on owner occupier home loans have gone down by up to 30 basis points bringing the rate to below 5 percent. As of July 22nd, the three year fixed rates dropped by 20 basis points coming to 4.64 percent. Two year rates will fall by 10 points to settle at 4.64 percent as well. The biggest drop in fixed rates on owner occupier homes will be the 30 basis point drop to 4.84 percent on four year loans.

Despite these recent changes to variable and fixed rates on loans on investor homes there has been an increase of loan approvals for investment properties in Australia in the last 12 months. Even with all of the recent changes to investor lending policies the rate of loan approvals has risen by 22 percent in just the last year.

Banks are seeking to find a balance between owner occupied home loans and investment property loans on their books. The changes in the pipeline set out by the APRA have caused banks to take drastic measures to make sure their books will be balanced when the new rules on investor lending caps begin next year.

Banks need to do whatever they can to increase the amount of owner occupied home loans compared to investment home loans. Other banks reported that they are reviewing their policies and rates and will do whatever is needed to meet the APRA’s standards.

Rising rates on investment home loans will likely be the norm for the near term. The big banks are where many investors turn for their home loans but there are other options. Institutions such as the Australian Lending Centre offer rates on investment home loans that are competitive with the big banks and can suit any investor. Enquire online now to find the most suitable investment loans for you today.

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Home Loans

Is It a Good Time to Buy Property in Australia?

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The Australian property market is not expected to drop, but it is projected to remain steady all throughout this year (2011). Price tags are set to remain within their current levels but would more likely grow moderately in the next two years. This is the unanimous forecast of numerous industry analysts and observers in the country.

Housing market experts note that local property prices could remain flat or slightly rise within the coming months. However, they assert that homebuyers need not worry. Price increases across the country are still low when compared to housing costs in most other developed countries. Thus, it is still the best time to find and buy Australian properties.

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Investment Property Loans

Home Loans for Property Investors

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The stock market is becoming increasingly volatile. Investing in shares has always been precarious, however today’s headlines indicated the heightened risks. That is why many smart investors are turning back to bricks and mortar, focusing on real estate property.

Investing money in real estate requires a certain level of skill and knowledge.  

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Investment Property Loans

Suburbs Where it is Cheaper to Buy Than to Rent

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Australian Lending Centre uncovers a number of suburbs in Australia where it is more affordable to buy property than rent.

According to research by property specialist RP Data, there are 74 suburbs across Australia where the monthly cost of renting is higher than that of a mortgage repayment. This is split respectively between regional and metro areas.
While the news is good for buyers, the report will set off alarm bells for tenants who are currently renting.

RP Data national research director Tim Lawless said, ”The effect of these combined factors means that renters are now doing their sums to determine whether paying off a mortgage is actually going to be cheaper than paying a landlord.”

Chris Riotto of the Australian Lending Centre has commented that; ”Low interest rates and current Government incentives are positive factors for Australians looking to buy a property and now with this new information on areas where it is cheaper to buy than rent consumers should definitely be weighing up their options’.

If you would like to talk to someone today about getting a mortgage or refinancing do not hesitate to contact us here at the Australian Lending Centre where our mortgage team will run through the options that may be available to you.

Call us on 1300 138 188 or simply fill out an express enquiry form on this page of our website.