Home Loan approvals data for October released by the Australian Bureau of Statistics (ABS) showed a 6.1 per cent fall from the previous month in loans approved for investment lending.
Cigna Wealth CEO Kent Leicester remarked that the decision by many lenders to raise interest rates for investment and interest-only loans, as well as revising their borrowing conditions, has certainly been effective in deterring investors. “Banks have also gone on to lift variable rates independently of the Reserve Bank of Australia (RBA) cash rate decisions as they face additional compliance and provisioning costs. They have done so in response to the Australian Prudential Regulation Authority (APRA) which has been enforcing new regulatory requirements that will increase the cost of providing mortgagees.”
There has been a shift from bank to non-bank lenders as consumers are looking for better rates.
Source The Adviser