There have been many changes to home loans rates and lending policies recently and home finance is more complex than ever. This is driven by the government regulator APRA forcing lenders to implement changes to their credit policies and subsequent interest rates in an effort to ensure the housing market slows down.
In particular for expats and foreign income earners, lending restrictions continue to increase. However, as experts in finance for Australian expats, we still have competitive options available that are not widely available through other brokers or lenders.
Lenders now offer varying interest rates depending on:
– the purpose of the loan (whether it’s for a home or investment property)
– the size of your deposit (if you’re buying) or equity available (if refinancing)
– whether your repayments are principal and interest, or interest only
For example, we recently assisted a client who had existing investment loans and a private banking client with a lender who significantly changed their credit policy for expats and the client could no longer access equity needed for a new investment purchase. We were able to provide an option for them with another lender, giving them access to equity and borrowing capacity for another investment property while also lowering their interest rate compared to the original lender.
Additionally, it may be time to consider fixing as there are many great fixed rates on offer as well. With talk in the media of future rates hikes in the next year or two, fixing can help provide certainty around your repayments.
Please contact me if you, a family member or friend, would like to discuss how you can:
– maximise your financial position,
– consolidate debt,
– save on interest,
– increase your cashflow or,
– purchase a new investment property
We welcome referral of our service to friends, family and work colleagues who may benefit from our service.
