If you’re an investor, the APRA can seem like a massive thorn in your side…
Just think about all of the changes they’ve made over the last few years.
So many of them focus on curbing investor lending, which makes it harder for you to build your portfolio.
The good news is that we’ve finally reached the light at the end of the tunnel.
Key APRA changes in 2019 may prove beneficial to you as an investor.
The Key Proposal
Let’s start with the most recent APRA proposal.
In May 2019, the organisation suggested that it may loosen its current requirement for lenders to assess borrowers based on a 7.25% interest rate.
If this proposal becomes a reality, borrowers will have more flexibility. They won’t have to go above and beyond to prove their serviceability.
Ideally, this will make it easier for buyers to access home loans. This could result in more demand for your investment property.
Lifting the Caps
For those who don’t know, the APRA created a couple of caps in recent years.
The first was a growth cap for investment lending. All lenders had to restrict the growth of this aspect of their businesses to 10% or less.
The end result was that you had access to fewer investment loans.
The APRA followed that up with a second cap. This one limited interest-only loans so that they could only account for 30% of a lender’s output.
Again, that meant fewer options open to you as an investor.
In 2019, we’ve seen both of those caps get lifted.
So Is it Easy to Get a Loan Now?
Easy may not be the right term.
You may still have to deal with very strict criteria even though you now have more options.
That means it’s irresponsible to claim that you’re going to breeze through the application process.
However, you could make it a lot smoother if you can find a high-performance property.
That’s where Dashdot comes in.
We can help you find high yield and high growth properties that offer plenty of value adds.
Just take our 15-second survey to find out if we can help you on your investment journey.