Whether it`s the rigid needs of ordinary homeowners, or investment, buying houses is something everyone in Australia can`t avoid. Recently, Australia`s major banks, in response to the APRA (Australian prudential Regulatory Authority) to tighten risk credit guidelines, the provisions of housing loan processing were updated! Mainly including property valuation, down payment ratio and other terms!
With the changes, regulators and banks have tightened scrutiny and reduced credit limits by strictly controlling the borrower`s ability to repay loans.
This wave of banking policy changes, the following points need attention!
Mortgage ratio
Focus! Be careful with apartments with too high mortgages, or you`re on the bank`s "blacklist," or you`re on the bank`s blacklist.
At present, banks will no longer lend to apartments with a mortgage ratio of more than 95%. At the same time, the banks also have a "form" of their own, to help the famous postal areas and suburbs set certain mortgage-to-ratio standards.
Sydney and Melbourne remain key targets for bank inspections, particularly in the rocky areas of Sydney and Duckland in Melbourne.
Repayment capacity
The ability to repay loans has always been an important "red alert" for real estate loans. With the increase in the number of vicious loans, banks have had to raise their standards to maintain risk control.
Now banks require that not only basic expenditures need to be declared in general terms, but other corresponding expenditures should also be reported item by item, and the category has become directly into 13 categories!
Therefore, it can be seen that the assessment of living expenses is becoming the focus of regulators in recent years. With solid asset security, you can get a response from part of the expenditure.
Apartment area
Different banks have different requirements for the size of apartments they own, especially for sellers who want to buy prospective homes, and this clause must be thoroughly investigated.
According to the new regulations issued by NG Eirect Bank, the size of apartments that can apply for loans should not be less than 40.
Want to buy a house? Yes, but if the loan is not passed, the settlement will be a lot of trouble.
As you can see, in Australia, the control of the real estate industry is also being severely enhanced. For friends who want to buy homes, how to have the assets that can convince banks is the top priority; For professional real estate investors, expand their investment range, choose other investment projects, or a good choice.
