Non-bank lenders to be flooded with interest from investor borrowers
Non-bank lenders are expected to benefit from the interest that will come from investor borrowers. This is a consequence of loans from the Big 4 banks running thin due to the pressure from APRA.
“Non-bank lenders are likely to reap the rewards of investors being turned away by the big banks,” said Mozo home loan expert, Steve Jovcevski.
“Some investors are having applications rejected, resulting in a flurry of panicked refinancers flooding the market, especially those settling on properties as early as this week.”
According to Mr Jovcevski, those who have bought properties off the plan will get a rude shock when it comes to financing their purchases. Mozo’s advice for investors is to look beyond the big 4 to non-bank lenders to secure an investor loan.
"Out of 83 lenders on Mozo, 48 are non-bank lenders and not strictly under regulation by APRA," he added.
While the average Big 4 variable rate is 4.69%, the top rate from a non-bank lender at the moment is as low as 3.98%.