New fees and loan structures are to be introduced by lending institutions in response to strong buyer demand.
In fact, CBA and other lenders are raising borrowing rates by up to 50 basis points, cutting discounts and reintroducing administrative fees as well as revamping product ranges in response to strong buyer demand in Melbourne & Sydney.
The push could also be a move to offset rising costs and rebuild margins, as well as to control loan volumes to say within the regulatory speed limits.
CBA, the nation’s biggest mortgage lender, is expected to raise rates for the second time in two weeks by 47 basis points or 4.73 per cent on its three-year “special rate” investment loan, whilst the rate on its owner-occupied “special rate” loan is rising by 30 basis points.
An establishment fee of $600 (or $8 monthly loan service) is also being reintroduced for the special rate offers, effective immediately.
Other big name lenders like AMP Bank and National Australia Bank are expected to revamp existing product offerings.
You can read more about the expected changes here.
If you’re interested in learning more about these expected changes, you can drop us a line or call us on (03) 9645 5465. We have access to a wide selection of lending institutions and brokers across Australia, allowing our clients to get the optimum loan structure for their investments.