Big news from the Reserve Bank today... There is some easing around deposit restrictions for new lending from 1st January.
Investors - Will now have to have a minimum 30% deposit instead of 35% deposit. (There is an allowance of 5% of loans to be over this threshold)
First Home Buyers - The banks can now have up to 20% of their overall lending to people who have less than 20% deposit.
What does this mean for you?
For investors or people wanting to get in to investing this is going to make it a lot easier. You'll have much more usable equity so your borrowing power is going to increase and you may be able to afford an investment property where you couldn't before.
For First Home Buyers this will make it easier to gain pre approval (some banks would only approve if you have an agreement to buy) and should also drive down the cost of borrowing with less than 20% deposit since there will be more availability of money at this level.
Watch this space as the banks change their policies to come in line with these new rules for the new year.
Want to talk about it?
Click this link to get in touch with us and your message will go right to our inbox or give us a call on 0800 696 678 to discuss.
We can help make a plan to ensure you're in a position to make a move in early 2019 to take advantage of these new rules.
This is great news with less than a month until christmas!
We look forward to discussing some options with you
Adam, Claire and the My Mortgage Team