Is it really going to be harder to get a loan? Not at all… Let me explain.
I’ve seen a load of hyped-up news headlines spouting scary things like “loan crackdown”, “lenders told to tighten their belts”, and “housing market risk”.
If you’ve seen the news too, you might be thinking it’s now impossible to get a loan for your first home or investment property.
Yes, the regulator has asked banks to raise their interest rate buffer when assessing home loans… by just half a percent. This takes the buffer from 2.5% to 3%.
In real terms, it means the average family’s borrowing capacity might drop by $35,000.
Not that much, right?
I should also let you know that the changes only apply to banks. Life goes on as normal for smaller niche lenders who can help you enormously if it turns out your goals and finances don’t align with the big banks.
So if the ‘crackdown’ headlines gave you a fright, and made you think your first home, or an investment property, were out of reach, I hope this makes you feel a little calmer.
There’s really nothing to worry about, especially when you have my team in your corner.
Here’s the Top 5 reasons our members get a much smoother ride from lenders:
1. We structure things differently
Using equity in your home as the deposit for your investment, only buying cashflow positive properties in high-growth areas, rental guarantees… All this, coupled with our strict 13-point selection criteria, means the banks won’t see you as a red flag, but as a smart investor.
2. Data, data, data – NOT yadda, yadda, yadda
Our “Property Multiplier Methodology” is recession-proof, data-driven, and immune to market hype and speculation. Our unique ability to pinpoint the suburbs that are set to boom – before it happens – means you’ll always get a better deal than the rest of the market.
3. We love banks
Having helped more than 4,000 members over the last decade, we have great relationships with lenders across the country, meaning a smoother approval process for you.
Not to mention, we’re paperwork nerds and shoulder the load of dealing with the banks, dotting the I’s and crossing the T’s so you don’t have to.
4. Knowing the rules of the game
We know Australia’s lending regulations inside-out, which means we see opportunities for you that others don’t, and fix problems BEFORE they happen.
5. The government protects you
Australia’s economy needs a healthy property market. This is why there are already multiple government guarantees and tax breaks in place to protect buyers and encourage investment.
Don’t forget, historically low interest rates are here to stay for a while yet.
Meaning you still have enormous borrowing potential (and right now is the time to take advantage!).
I know this is a long post, but it’s important I set the record straight.
The last thing I want is for inaccurate headlines to stop you from achieving the dream of home ownership… Or owning multiple properties, building a strong passive income, and wiping away your mortgage in the next 7 years. A tweak in regulations won’t stop you, I assure you.
If you want to get crystal clear on your options, and get some personalised expert advice, click here to get in touch.
Despite all the hyped up headlines, it’s actually a great time to start building your future, and we’d be honoured to help.
– Scott Kuru
As one of Australia’s leading property investment experts and wealth mentors, Scott Kuru is Founder & CEO at Freedom Property Investors.