Falcon, homeowners have been using their homes as an atm. But that banking policy is now in reverse;
First let me share with you the word on the street...
After having a great chat with a lender the other day I heard some amazing statistics that are also supported by the data published in the Financial Review a couple of weeks ago. These were Commonwealth bank home lending rates were the lowest since record keeping began, and what my friend told me was 1 in 40 loans were being approved.
Now what this shows me is that there is still a massive desire to have a home or investment property, it is just that the lending restrictions are tighter than they have ever been.
The other interesting statement was that he had a client who had purchased a house on the water for 1.2 Million dollars, put in $950,000 deposit of their own money and then needed to refinance. The new valuation came in at $695,000. That's down 40% in two years. Certainly not the figures that are being published in the property data.
