The Loan Market saw change in 2015!
The year is nearly ending. The latter part of 2015 saw changes in lending policies and regulations. Some borrowers have already been impacted by the changes. You may be also, without realising it.
Here are 5 reasons why now could be a good time to review your Sydney loan.
Some banks have increased investment loan rates
Australian Prudential Regulation Authority or APRA has been pressuring lenders to push stricter lending requirements, including only holding a certain value of investment based loans. As a result many lenders have increased their Standard Variable Rates and Fixed rates from 0.25% to 3% on investment property loans.
Lenders have also placed tighter rules on additional rate discounting they provide borrowers over investment based lending. Talk to you accountant and financial planner on the possible implications of such regulations on your investment portfolio.
Further rising mortgage interest rates
Whereas the Reserve Bank of Australia (RBA) tried holding the standard cash rate for the majority of the year, changing banking regulations will most likely push the interest rates up. Check with your mortgage broker about applicable policies on your loans to see if you will be impacted. You can also check with a financial broker on what to do.
You could end up saving more
Once you have reviewed your loan, you may be able to find ways to refinance it with either a lower interest rate or lower mortgage repayments. Even a small interest rate percentage drop can save you thousands of dollars long-term.
Crucial for your investment planning
Reviewing your Sydney loan will tell you where you are at in relation to your future investments strategy. Can you still afford another loan (and how much)? Are you able to purchase another investment property? Will rates affect your short and long-term investment plans?
These are all valid questions so it’s important to understand where you stand and know your options.
There may be new and better options
The loan products market is constantly changing and filled with new and improved solutions. If you haven’t reviewed your loan for at least 3 years you will be surprised to see what you may find. Reviewing your Sydney loan if nothing else, provides a window of opportunity to assess what’s new in the market in terms of better lenders, rates and overall loan solutions.
Find mortgage and finance brokers in Sydney
If you are looking for a reputable Sydney loan broker to assist you, you can try one from our Tradebusters Connect free trade and business directory.
The details of our pick of the best 3 local home loan brokers by Sydney area are listed and you can contact them directly today.
Find local businesses in Sydney
If you want to find other reliable local businesses to help you through the buying, selling and moving process, you can also try one from our Tradebusters Connect Sydney CBD free trade and business directory. All their details are listed on our website and they are ready to help you today.
Other Useful Links:
Home Renovations Sydney Builder