Investor mortgages adjusted under Westpac… Mortgage aggregator sees effects of investor clampdown… Greece to affect Australian markets?...
Property investors affected by Westpac changes
Australia's biggest lender to landlords, Westpac, will require new property investors to have a deposit of at least 20 per cent, as banks escalate their attempts to dampen the booming growth in borrowing by housing investors, according to the Australian Financial Review.
Westpac will from Wednesday cap loan-to-valuation ratios (LVRs) for new property investor loans at 80 per cent, the toughest limit imposed by a major bank so far. ANZ Bank is also introducing a 90 per cent cap on LVRs for investor loans as well, which will take effect on Wednesday as well.
National Australia Bank last month capped investor home loan LVRs at 90 per cent, while the Commonwealth Bank has said it will not take the tax breaks borrowers receive from negative gearing into account when LVRs on investor loans exceed 90 per cent.
Mortgage aggregator sees effects of investor clampdown
The clampdown on investor loans is beginning to take effect, as one of Australia’s biggest aggregators, AFG, posted a significant drop in loans to investors over June. According to the aggregator’s June lending data, there was a significant cooling for investment loans – down to 36.9 per cent nationally, from a peak of 43.1 per cent in April.
The last time overall investment loans were at similar levels was July 2013, when they comprised 35.9 per cent of all mortgages processed. The most significant drop in investor loans was in New South Wales. Across the state, loans to investors fell by over eight per cent, from 49.8 per cent in May to 41.6 per cent in June.
Investment loans had been running at an average of 49.5 per cent of all loans in NSW for the previous 12 months.
“These figures suggest that APRA controls are starting to take effect, but not at the expense of the overall mortgage market. If this trend continues, it should help allay concerns about overheating in Sydney, in particular, as investment levels there come back into line with the sustainable, long term, national average.”
Greece to affect Australian markets?
There is a spread of key economic figures released next week to steer thinking in financial markets, but the result of the Greek referendum will be front of mind when they open on Monday, according to Sky News Australia.
Economists expect the Reserve Bank to hold the cash rate at a record low of two per cent when its board meets on Tuesday, but the central bank will be keeping a close watch on the reaction of global markets to the Greek ballot.
Data on Friday will also show the strength of demand for mortgages in the face of steep price rises in the Sydney property market and parts of Melbourne, which has recently raised concerns about a housing bubble.
Australia's biggest lender to landlords, Westpac, will require new property investors to have a deposit of at least 20 per cent, as banks escalate their attempts to dampen the booming growth in borrowing by housing investors, according to the Australian Financial Review.
Westpac will from Wednesday cap loan-to-valuation ratios (LVRs) for new property investor loans at 80 per cent, the toughest limit imposed by a major bank so far. ANZ Bank is also introducing a 90 per cent cap on LVRs for investor loans as well, which will take effect on Wednesday as well.
National Australia Bank last month capped investor home loan LVRs at 90 per cent, while the Commonwealth Bank has said it will not take the tax breaks borrowers receive from negative gearing into account when LVRs on investor loans exceed 90 per cent.
Mortgage aggregator sees effects of investor clampdown
The clampdown on investor loans is beginning to take effect, as one of Australia’s biggest aggregators, AFG, posted a significant drop in loans to investors over June. According to the aggregator’s June lending data, there was a significant cooling for investment loans – down to 36.9 per cent nationally, from a peak of 43.1 per cent in April.
The last time overall investment loans were at similar levels was July 2013, when they comprised 35.9 per cent of all mortgages processed. The most significant drop in investor loans was in New South Wales. Across the state, loans to investors fell by over eight per cent, from 49.8 per cent in May to 41.6 per cent in June.
Investment loans had been running at an average of 49.5 per cent of all loans in NSW for the previous 12 months.
“These figures suggest that APRA controls are starting to take effect, but not at the expense of the overall mortgage market. If this trend continues, it should help allay concerns about overheating in Sydney, in particular, as investment levels there come back into line with the sustainable, long term, national average.”
Greece to affect Australian markets?
There is a spread of key economic figures released next week to steer thinking in financial markets, but the result of the Greek referendum will be front of mind when they open on Monday, according to Sky News Australia.
Economists expect the Reserve Bank to hold the cash rate at a record low of two per cent when its board meets on Tuesday, but the central bank will be keeping a close watch on the reaction of global markets to the Greek ballot.
Data on Friday will also show the strength of demand for mortgages in the face of steep price rises in the Sydney property market and parts of Melbourne, which has recently raised concerns about a housing bubble.
