A huge change has just hit the lending environment, but is it the "investor crackdown" the headlines are claiming? The financial regulator, APRA, has introduced a significant new rule targeting high Debt-to-Income (DTI) lending, specifically, loans more than six times a borrower's gross income.
In this mini-episode, we break down exactly what the new 20% DTI cap means for banks and, more importantly, for you as a borrower or property investor.
Spoiler Alert: This new rule will likely not affect 90-95% of people in the market!
Don't let the scaremongering stop your property plans! Tune in to understand the facts before February 1st, when the new rule comes into effect.
General advice only and not personal advice. CRN 485467
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Chapters:
00:00 Introduction and Recent Changes in Lending Environment
00:49 Understanding the DTI Cap
02:20 Impact on Different Types of Buyers
03:25 Assessment Buffers and Lending Safety
04:32 Clarifications and Effective Date
05:15 Investor Confidence and Market Impact
06:27 Conclusion and Community Updates
General advice only and not personal advice. CRN 485467
Produced by Podwave Studios
#Australianproperty #perthproperty #propertyinvestment #MichaelKilliner #MelbourneProperty #PodwaveStudios