Bridging the finance gap
Where previously they would have been willing to back a deal, now it is becoming much more common for applications to be declined.
That is in part due to the Reserve Bank’s crackdown on loan-to-value restrictions (LVRs).
It is nearly impossible for mainstream banks to lend more than 60% of an investment property’s value, unless the property is a new build or an investor is conducting remediation work.
Glenn Stevenson, head of mortgages at ANZ, says the bank is still lending to investors but the LVR rules have drawn a line in the sand, ruling out a chunk of the market.
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