Posted Wednesday, 29 July 2015 at 16:46 by Shape Home Loans
Tagged: APRA lending laws | increasing your serviceability | Investors | property investing | interest rates | news | Loan for investment | Loan for investor
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A few changes from ING.
1. No more cash out for property that's secured against an IP - This means if your property goes up in value, you cannot take the increased value out as a loan/cash( with ING anyway)
2. Max 70% of gross rental income taken for servicing - This will impact how much you can borrow, especially for investors
3. No more discount for NEW investment loans ( so rate will be from 4.72% @ 80 LVR)...existing are not affected - Interest rate will be higher for new investment loans.
4. Old policy change from June ....but max 80% LVR for NSW investment properties- For any property located in NSW that's declared as an investment the max LVR is 80% meaning you will need a 20% deposit
- Discount still available with rate from 4.13%- Can still get a 95% LVR loan, so 5% deposit- Can still do cash out/ equity
Note: This is only a ING policy change, there are still a lot of banks that have not change their policy or interest rate