Have you bought a property off-the-plan or are you looking at property that is not yet complete? Read on;
The Reserve Bank of Australia has warned that settlement risk on apartments off-the-plan may have increased as a direct result of the stricter criteria that the banks are now applying to investor housing loans.
Some banks have expressed concern about this settlement risk on pre-sold apartments, particularly in light of the recent regulatory measures aimed at moderating investor demand, they they have also noted that pre-sale defaults have been very limited so far.
The Reserve Bank said a number of banks have already responded to this, and the risk of oversupply more generally, by tightening lending standards to apartment developers in the more “at-risk” areas.
If you want to know more about all the changes to investor lending and how it affects you or maybe you just want a second opinion on your current home loan, call our office today on (02) 9527 2230.