All Topics / Finance / APRA Brakes – will they be lifted?

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  • Profile photo of getbusylivinggetbusyliving
    Participant
    @getbusyliving
    Join Date: 2008
    Post Count: 2

    I noticed the review of the serviceability brakes APRA places in investors a few years ago is being reviewed. I hope this passes and banks can then stop having higher interest rates for investors vs home owners. Does anyone have any insight to this process?

    https://www.apra.gov.au/news-and-publications/apra-proposes-amending-guidance-on-mortgage-lending

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hmmmm. Even with the ‘brakes’ eased, the increasing loan book risk is likely to cause lenders to lower LVRs and increase credit qualifying criteria.

    Beyond that, is getting into more debt really the answer? Short term fix for long term pain.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of getbusylivinggetbusyliving
    Participant
    @getbusyliving
    Join Date: 2008
    Post Count: 2

    Thanks Steve, agree more debt is not the answer now, but further interest rate relief for investors will allow for potential reductions in rent in order to assist tenants.

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Not sure how much lower interest rates can go. And if investors can’t make money where they are now, then there probably isn’t much hope that they’ll do better at 100bp lower.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

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