Before rushing out to find a great value investment property, it's important to note some recent changes effecting investment loans. Firstly, from July 1, 2016 the Australian Prudential Regulation Authority will force banks to hold more capital. This will raise borrower interest rates higher than interest rates for owner occupiers.Secondly, lenders have changed the Loan to Value Ratio's (LVR's) that they are prepared to lend for investment properties. Policies have also changed around how investors can repay an investment loan.
So, when determining the best investment loan for you, we give great consideration to your long term plans, not just the property being purchased now.