The 10% ceiling that APRA has placed on investor lending growth is starting to bite property sales. There is an interesting dance going on by the banks as they try to attract just enough investor growth not to fall foul of the guidelines.
What is crazy is that investors that tick all the boxes on the lend criteria, through no fault of their own (other than their timing), may not get finance simply because the bank they applied to is walking the line on APRA limits.
So it could be luck of the draw and bank loyalty may have to go out the window with multiple applications being your best bet.
The chairman of a national broker group believes banks will continue to adjust the pricing and policy of their mortgage products as they seek to grow their investor loan books as close to APRA’s 10 per cent limit as possible. “No one is going to get any awards for being at 9.0 per cent,” Mr White said. “You’re going to want to be at 9.9 per cent but not 10.2 per cent” creating further complexity to growth targets. “I think there will be a lot of changes still as banks try and work out how to nudge the Queen Mary into dock, so to speak. You have to be so delicate at getting in at 9.99 per cent and not 10.01 per cent that there will be a lot of minute changes as we get closer to year-end dates.”