Borrowers looking to buy a house with an interest-only loan will find it much harder under new rules brought in to curb “heightened risk” in the housing market. The Australian Prudential Regulation Authority wrote to all banks on Friday, saying it expected them to tighten their lending practices particularly on interest-only and investor loans. To read the entire article by Georgia Wilkins on The Age, please click here.
Banks to Slam Brakes on Interest-only Loans
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In choosing a bank/broker to assist us with finance, we wanted someone who understood our unique situation of being first home- buyers relocating interstate, and who wanted to purchase a property as soon as possible once we ‘hit the ground’. Through a family friend, we were introduced to Paul. Paul was exceptional to deal with throughout every stage of the process. He helped guide us through each stressful step of our journey, helped to manage our expectations with regular communication, and assisted with insights into a number of potential properties that were really helpful in our decision-making. (He even provided some free counseling at times, haha!) We felt like we were in good hands the whole time and felt confident throughout the entire process. As first-home buyers undertaking this stressful process, it meant everything to us to feel like we were understood, and that we knew where things were at throughout each stage of the process. It helped to take some of the stress out of the situation and allowed us to concentrate on other things. Thank you Paul, and we hope you and your family have a terrific holiday season!
- Julian & Dominica