Lending update

As yet, we have not seen a material decline in bank valuations of property, however, the sentiment and risk grading for future declining valuations is included in the valuation.

There is some caution on high loan-to-value ratio applications and off plan applications, but strong borrowers are being approved and in the main, lenders have been doing their best to maintain the flow of credit to consumers.

There is a good range of incentives and benefits being introduced by State and Federal Governments to stimulate property and lending activity, for example:

The First Home Buyer Scheme in NSW has increased the purchase value of properties where it will waive ($800,000) or discount (up to $1 million) the stamp duty payable by first home buyers for new properties.
The First Home Buyers Scheme is still available for existing homes to waive or discount stamp duty.
Home Builder Grant ($25,000) is available for new or substantially renovated properties.
First Home Owner Grant.
First Home Loan Deposit Scheme

In addition, St George Bank is now offering an 85% loan to value of a property loan with a nominal $1 lenders insurance premium .

It is important when looking at these incentives you reach out for advice on eligibility as there is various criteria that apply. You may also be eligible for more than one initiative so please get in touch and we can assist you with this.

Lastly, the extension of the home loan repayment deferral scheme by an extra 4 months (until January 2021) has been welcomed by those who are suffering financially due to the impacts of COVID-19.

If you have any questions or require any assistance with your lending, please do not hesitate to contact your adviser or the Infocus Lending Advisory.

This information and any advice in this website is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, property, tax, credit or personal financial advice and should not be relied on as such. You should obtain advice relevant to your circumstances before making decisions in relation to any matters discussed. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. The case studies are hypothetical, for illustration purposes only and are not based on actual returns. You should seek specialist advice from a tax professional to confirm the impact of any advice on your overall personal tax position. Taxation information is based on our interpretation of the relevant laws as applied at the date of this communication. Nothing in this website represents an offer or solicitation in relation to property, securities, investments, financial services or credit in any jurisdiction. While every care has been taken in the preparation of this information, it may not remain current after the date of publication and Infocus Advisory and its related bodies corporate make no representation as to its accuracy or completeness.

Lending update – August 2020