One of the major banks has updated its assessment policy for loan serviceability in response to the banking regulator’s guideline changes, and others look set to follow.
This week, ANZ said it will reduce its interest rate floor for home loan serviceability assessments from 7.25 per cent to 5.5 per cent.
ANZ will increase its sensitivity buffer from 2.25 per cent to 2.5 per cent.
So far, only ANZ has implemented changes in response to APRA allowing banks to self-assess their buffers.
However, sister title to Smart Property Investment, Mortgage Business, has confirmed that the other three majors are currently reviewing their lending policies.
Broadly speaking, property experts are more confident this financial year of easier access to credit for investors than in the previous two years. Much of this confidence is stemming from guidance handed down by the banking regulator, including when it lifted its cap on interest-only lending at the beginning of the year.