I am a mortgage broker and I am seeing big changes in the market in the last few weeks. One by one all the banks have been coming out with changes to lending policy particularly for investment lending.
NAB and its subsidiary Advantedge via AFG Home Loans used to be the lender that would in most cases lend investors the most money based on their income. They are the latest ones to come out and tighten up. AFG Home Loans are now putting a 28% premium loading on a customers annual mortgage commitment on other existing loans when calculating a customer's borrowing capacity for a new loan. This essentially reduces borrowing capacity substantially.
All the banks have had the riot act read to them by APRA.
I have a client that a couple of weeks ago was entitled to borrow $720k with Westpac and now can only borrow $585k. Its a weird market. I am getting enquiries from Sydney customers wanting to invest in Melbourne. And Melbourne clients want to buy in Brisbane.
