Sunday, July 21, 2019

The Sydney residential property remains one of the most sought after in Australia... are you looking to buy?


APRA's home loan rule relaxation will allow for bigger mortgages

Updated
 167/569 George Street, Sydney "The Summit Apartments"
It will now be easier for Australia's prospective home buyers to take out bigger mortgages.

Key points:

  • From today, banks only need to apply a 2.5pc serviceability buffer to determine whether customers can afford mortgage repayments
  • With mortgage rates at record lows, it is significantly below the 7pc minimum interest rate test that APRA mandated 4.5 years ago
  • Relaxed lending standards come amid falling house prices and expectations the RBA will cut rates again
That is because the prudential regulator has decided to relax stringent lending restrictions on banks and other financial institutions.
Effective immediately, banks no longer need to apply a "stress test" to see whether their customers can afford, at least, a 7 per cent interest rate on their residential home loan repayments.
Under the new standards, implemented by the Australian Prudential Regulation Authority (APRA) on Friday, banks will have the freedom to set their own serviceability buffers.
Click here for full article

4 comments:

  1. Really very happy to say, your post is very interesting to read. I never stop myself to say something about home loan rules. Best Home Mortgage Lenders in Canada

    ReplyDelete
  2. Quite glad to state, your blog is exceptionally intriguing to peruse. Your points are evident and helpful. I appreciate your work. Thanks for fantastic data. Residential Finance Specialists Australia

    ReplyDelete
  3. Are you looking for a place to call your own in Oshawa, Ontario? Mortgage Intelligence has the top mortgage brokers in the industry. For us, finding the best possible Oshawa mortgage rates and conditions means prioritizing the needs of our customers. Mortgage Intelligence can help you get a low rate on an Oshawa home loan.

    ReplyDelete
  4. If you are a veteran and want to construct your own home, you may apply for VA financing. These loans are specifically developed for veterans, current military personnel, and surviving spouses, and there are several benefits to taking out one of these loans. One of the most significant benefits is that there are no down payments required with this loan. Furthermore, VA loans do not need private insurance and have less stringent credit requirements.

    ReplyDelete