{"id":22916,"date":"2018-10-22T01:00:31","date_gmt":"2018-10-21T14:00:31","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=22916"},"modified":"2018-10-22T01:00:31","modified_gmt":"2018-10-21T14:00:31","slug":"whats-all-the-talk-about-lending-criteria","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/whats-all-the-talk-about-lending-criteria\/","title":{"rendered":"What\u2019s All The Talk About Lending Criteria?"},"content":{"rendered":"

If there is one topic that\u2019s top-of-mind for property investors right now, it\u2019s the tightening of lending criteria, and with the Banking Royal Commission ongoing, it\u2019s making even the most successful property investors quiver in their well-heeled boots.<\/p>\n

But what\u2019s the reality behind the crackdown on lending and how does it really affect the everyday mum and dad investors out there?<\/p>\n

To understand the way forward, it\u2019s important to understand firstly how we got to where we are now. This takes us back to late 2014 when Australia\u2019s banking regulator, Australian Prudential Regulation Authority (APRA), and the Council of Financial Regulators, introduced a series of macro prudential policies which have resulted in changes to lending.<\/p>\n

\u2018APRA acted to curb excessive lending and to cool an over-heating housing market, particularly in Sydney and Melbourne,\u2019 DHA\u2019s Chief Economist Dan Carton said.<\/p>\n

\u2018Over the course of the next three or so years APRA\u2019s actions operated to limit mortgage lending with the aim of ensuring the stability of the Australian economy and limit speculation in the residential property market.\u2019<\/p>\n

\"\"<\/p>\n

For the everyday investors this meant that it became harder to get a home loan and for others it may have meant that they couldn\u2019t borrow as much as they had previously thought. Other investors have seen their rates rise above those paid by owner-occupiers.\u2019<\/p>\n

In a recent speech to economists in Sydney the APRA Chairman said that 13 of the country\u2019s largest banks had passed \u2018severe but plausible\u2019 stress tests and that further changes would be marginal.<\/p>\n

\u2018Any tightening from here on is expected to be at the margin as banks seek to get a better handle on borrower expenses, and better visibility of borrower debt commitments,\u2019 APRA chairman Wayne Byres said.<\/p>\n

\u2018Anecdotally, we\u2019ve had some investors pull out of sales as their finance pre-approval has shifted,\u2019 Mr Carton said. \u2018But generally the more reliable rental income from the DHA property investment program could be a safer proposition for a lender.\u2019<\/p>\n

Disclaimer
\nInvestment is subject to conditions of sale. Under the DHA lease, lessors retain some responsibilities and risks, i.e. rent, make-good and market fluctuations. Prospective investors should seek independent advice. See\u00a0dha.gov.au\/lookforward<\/a>\u00a0for relevant information. Rent is subject to abatement in limited circumstances.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

If there is one topic that\u2019s top-of-mind for property investors right now, it\u2019s the tightening of lending criteria, and with the Banking Royal Commission ongoing, it\u2019s making even the most successful property investors quiver in their well-heeled boots. But what\u2019s the reality behind the crackdown…<\/p>\n","protected":false},"author":176692473,"featured_media":22917,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,25,31],"tags":[70],"class_list":["post-22916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story","category-sponsored-channels","category-your-investment-property","tag-featured"],"yoast_head":"\nWhat\u2019s All The Talk About Lending Criteria? - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/whats-all-the-talk-about-lending-criteria\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s All The Talk About Lending Criteria? - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"If there is one topic that\u2019s top-of-mind for property investors right now, it\u2019s the tightening of lending criteria, and with the Banking Royal Commission ongoing, it\u2019s making even the most successful property investors quiver in their well-heeled boots. 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