Investment Loan Rate Increased? Investment Loan Review

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Has your investment loan interest rate increased? Don’t be ripped off, get an investment loan review

If your investment loan rate has recently increased or it has been a while since you had it reviewed you may want to get an investment loan review to check if there are any better options available.

What is going on with investment loans?

If you have been ignoring the chatter in the media about property prices and investment lending you may not be aware that the Government Banking Regulator (Australian Prudential Regulatory Authority or APRA) has been putting pressure on the banks to curb their investment lending if they have their investment loan books growth above 10%.
The offending banks and even some banks that were not above APRA’s 10% investment loan growth limit have responded in a number of ways:

1. Raising their investment loan interest rates including for existing variable rate investor loans;
2. Changing their borrowing power calculations to make it harder for property investors to qualify for a loan;
3. Limiting investment loan to value ratios to lower levels; and
4. Decreasing their interest rates for owner occupied loans to encourage more owner occupier borrowers and even out their loan books.

Not all offending banks are doing all of the above.

Are there still good investment loan interest rates available?

Yes,there are still good investment loan interest rates available! Not all lenders have exceeded APRA’s 10% investment loan growth limit and some lenders are still actively competing to get your investment loan. These other lenders are still offering competitive investment property interest rate, fee and feature packages.
As property investors we know how important it is to have a competitive interest rate on your investment loan. If you are paying more interest than the rental income, negative gearing may make up some of the difference but even with negative gearing you are still paying money out of your own pocket. This can impact on your ability to make further investments and or your lifestyle. Lets face it no one want to pay more than they need to on their loan, least of all property investors who are investing to make money.

Are higher loan to value ratio investment loans still available?

Yes, higher loan to value ratio investment loans are still available! Some lenders are also still offering higher loan to value ratio loans 90% or up to 95% LVR exclusive of lenders mortgage insurance for investment properties.

Find out more about higher LVR investment loans

With the recent lending changes some banks have stopped offering higher loan to value ratio loans for property investors. Other lenders are still happy to lend at higher LVRs up to 90% or 95%.

High LVR investment loans

Investment loan review – Free

If your investment loan rate recently went up then you should get your investment loans reviewed by one of our finance professionals that understand investment loans. Oak Laurel has mortgage brokers that know which lenders have the good investment loan rates now. Or brokers can assist you to switch your investment loan portfolio to where there is a better loan package from another lender. If you have one investment property or many investment properties, our investment loans specialists will review your loan portfolio to identify if they can get you a better loan or loans. If you also have an owner occupied home loan(s) our finance professionals can check to see if there is something better available for that also.
We will not charge you for the review. If we cannot find any better options then there is no loss to you. However, you can be confident that you are not being ripped off. If we can find you better options then it could save you a lot of money.

Contact an Oak Laurel about an investment loan review!

Don’t delay act NOW!

+614 30129662

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RBA: further interest rate cuts likely – July 2015

The post RBA: further interest rate cuts likely – July 2015 appeared first on Oak Laurel.

Reserve Bank of Australia (RBA) Governor Glenn Stevens stated the further interest rate cuts remains “on the table”

In a speech to the Anika Foundation Luncheon in Sydney on 23 July 2015, the Reserve Bank of Australia (RBA) Governor Glenn Stevens stated the further interest rate cuts remains “on the table”.
Here are some key points that the RBA Governor noted in his speech:

• the financial spillovers from the Greek situation have not been large;
• the likely direct economic [from Greece’s troubles] spillovers to the rest of Europe also seem fairly contained, since Greece is quite a small economy.
• the “quite spectacular developments” in China’s equity market may end up having little impact on the Chinese economy;
• the evolution of China’s property market and financial sector are likely to be more important;
• the depreciation of the [Australian] currency is having an expansionary effect on the economy;
• inflation that has been well contained;
• despite the lowest interest rates that any current borrower has ever seen, the pace of lending to households remains moderate;
• many Australians are saving more and using funds in ‘offset accounts’ to offset mortgages.
• despite the doom and gloom and fulminations over the airwaves, in newspapers and in cyberspace, business confidence has risen in recent months.

The question of whether they [interest rates] might be reduced further remains, as I have said before, on the table.Glenn Stevens, Governor Reserve Bank of Australia

My commentary

 by Dr Nigel Abery (Ph.D.)
My conclusion from Mr Stevens’ remarks is that despite some instability in certain sectors of the Global economy, the Australian economy remains fairly stable and is adjusting from the mining led economy. There does not appear to be an immediate need for an interest rate cut(s). However, the RBA is prepared to cut if needed.
I believe that sometime in the next six months there will be an event (some poor economic news), that will not be a disaster for the Australian economy, but will spur the RBA to cut interest rates to boost consumer confidence and encourage spending. This of course will not only boost spending on consumer goods but also increase property prices in major capital cities.

Make your own interest rate cut - refinance to a better home loan

Don't wait for the RBA to cut interest rates. Ask an Oak Laurel mortgage broker about what they can do for you and your loan package.

Contact a mortgage broker

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Today 5 May 2015 the Reserve Bank of Australia cut the interest rate to 2%

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Today 5 May 2015 the Reserve Bank of Australia cut the interest rates to 2%

The Reserve Bank of Australia (RBA) met today to consider monetary policy and decided to cut interest rates by 0.25% to 2.00% effective from 6 May 2015.
In making the decision to cut interest rates, the Reserve Bank of Australia Board consider a range of economic factors including inflation, employment, commodity prices and Australia’s terms of trade, weakness in business capital expenditure in both the mining and non-mining sectors, subdued public (Government) spending, the exchange rate, the price of equities, growth in lending to the housing market, dwelling prices including Sydney price rises and prices in other cities.
The statement by the RBA board decided that the interest rate be cut but 0.25% to 2% and conculded that:

At today’s meeting, the Board judged that the inflation outlook provided the opportunity for monetary policy to be eased further, so as to reinforce recent encouraging trends in household demand.Glenn Stevens, Governor, Reserve Bank of Australia

As intended the rate cut will stimulate demand for credit including home loans, investment property loans and business finance.
This latest interest rate cut combined with the previous interest rate cut in Feb 2015, though widely expected, is likely to further stimulate interest in the property market from first home buyers and property investors alike and further push up property prices in selected markets.

Are you interested in purchasing an investment property?

Find out more information about investment property loans.
Investment property loans

Or if you want to discuss your home loan or investment property loan options with a mortgage broker contact us:
Mortgage brokers in Adelaide

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