It is more important than ever to use a mortgage broker for investment loans and here is why

• Higher interest rates: Some of the major lenders are increasing the interest rates for investment loans. Some recent examples are Commonwealth Bank (CBA) cancelling pricing requests for investment loans, and Macquarie increasing rates for investors.
• Larger deposits: One of the major lenders just announced that they will be lending only up to 80% of the property value for investment purposes, effectively immediately. They had been lending up to 95% of the property value not long ago.
• Decreased borrowing power: Several lenders have changed the way they assess a borrower’s capacity. Some lenders have increased the interest rate that they use in the assessment of a loan application. Some have decreased the amount of rent they use, while others no longer use negative gearing benefits in their assessment.
• Changes for foreign investors: Two major lenders recently announced that they are reducing their foreign investor loans from 80% of the property value down to 70%.

However, it should be noted that not all lenders are making these changes. We know which banks are making investment loans easier to apply for and why. Call us if you are having problems securing an investment loan.