Moves by lenders to clamp down on investment are proving confusing to borrowers, according to one broker network head.
1300HomeLoan managing director John Kolenda has said banks' moves to raise rates on investor loans will serve to confuse borrowers.
“Not only are rates for investors going up, but people on interest only loans are being targeted while there is a great variation now for all those looking to borrow money for investment purposes. Not only have there been changes in rates but now lenders loan servicing calculations, Loan to Value Ratio (LVR) requirements and using rental income to help service have changed," Kolenda said.
There could be a silver lining for brokers, though, Kolenda suggested.
"Investors who have already bought and are waiting to settle should see their mortgage broker as borrowing conditions have changed dramatically and they need to make sure they will be in a position to settle their purchase now that the goal posts have been changed," he said. “It highlights the need for mortgage brokers to help navigate borrowers through the maze.”
