Investment interest only lending – its back! Yes, you heard right! 10 years and 90% LVR are back for investment interest only lending.

I received an email today from a lender that effective Monday 25th March 2019, they will be making the following changes to Residential Investor Interest only lending.

• Interest only availability for investment lending will be increased to a maximum 90% LVR for new and increased lending.
• The maximum interest only period will be increased to 10 years for investment lending.

Why are they making these changes?

Back in 2017 many banks made changes due to the new APRAs responsible lending guidelines. All of the major banks stopped lending to investors over 80% LMI. They also reduced the interest only period to 5 years.

On recent review, they have made a decision to increase their focus on the investor market.

The upcoming changes demonstrate they have a continued appetite in the investor market within APRA requirements.

This email really got me excited as I truly believe that we are now at a turning point in the industry.

Now that one of the big 4 banks have does this, they all will start to follow suit.

I do already have a smaller bank that does offer the same 90% lending capacity yet, having a 10-year interest only product does offer and advantage. It is double the standard 5 years that most banks now currently offer our investor clientele.

If your investment loan is due to move to principle and interest then now is the time to act! Send me some details here below and we will be in contact