Hawkers, weren't you having a crack (disagreement) with me just 2 weeks ago when I talked about the out of cycle rate rises?
In addition, mortgage brokers now need to use P&I (principal and interest) when calculating serviceability for most banks even if the borrower is going to have an interest only loan. Plus, many are also factoring a 7% interest rate. So the landscape is changing. The push away from investments and into home occupier will become more evident as people start talking to their broker/bank about a new investment property they want. Many will be in for a nasty surprise as to how much the lending landscape and serviceability calculations have changed in 12 months.
