Here at Mortgage Advice we are starting to see articles and evidence that the changes in lending policy imposed by APRA on investment lending is starting to take effect. Below is excerpt from MPA magazine.
We would love to hear you thoughts on what is happening in your part of the country.
Sydney’s housing market cools down for investors, Australia’s biggest wholesale mortgage broker AFG reports large decline in investor property loans over the month of May giving the clearest signal yet that Sydney’s housing market is starting to cool, according to an article from the Australian Financial Review.
While the mortgage broker announced a record-breaking volume of $5.1 billion in mortgages processed for the month of June – up 34.5 per cent on June last year – it also reported a “significant cooling” in investment loans.
Investment loans were accounted for 36.9 per cent of the national pool of mortgages down from a peak of 43.1 per cent in April. The figures follow reports from Mortgage Choice that a clampdown on lending to landlords has dragged property investors’ share of its loan approvals to a 20-month low.
“These figures suggest that APRA controls are starting to take effect, but not at the expense of the overall mortgage market,” AFG managing director Brett McKeon said, “If this trend continues, it should help allay concerns about overheating in Sydney, in particular, as investment levels there come back into line with the sustainable, long term, national average.”