May lending environment update
With the recent drop in the official interest rate, there has been a small increase in lending activity. However the pickup in lending is significantly below that seen in 2014 and 2015 when rates were falling, indicating a more subdued lending environment.
Competition is increasing slightly, with some attractive rates on offer. However the best discounts are coming through negotiations with the banks, rather than cheap advertised rates. The banks have not significantly altered their credit criteria, so additional funds and increases are unlikely to be forthcoming for those who have traditionally been tight on serviceability.
Commercial lending remains competitive with the banks being very aggressive to set loans to strong applicants. However, tolerance for borrowers who do not meet the banks strict criteria is low and many borrowers with simple issues are getting turned away.
If borrowing money for any purpose (commercial or residential), it’s imperative that prospective borrowers have a thorough pre-assessment done to be presented to the banks in the best possible light.
Whether you’re buying a home, an investment property, looking to renovate or simply want to check you’re getting the best deal on your mortgage, Orium Finance are experts that make it easy.
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