All lenders are now banks! Treasurer Scott Morrison’s recent announcement to ease up on legal requirements for lenders to call themselves banks is great news for those looking for property investment.
The Big Four in banking held all the cards when it came to property loans, but now, all that’s changing. Lenders needed to have $50 million or more as capital to call themselves banks, and with that gone, more than 58l lenders are now legally, banks!
That is a ripper of a news given the spiralling property cost of $600,000 in Gold Coast and some suburbs like Mermaid Beach recording a 33.5% jump in property costs over the last one year. Folks in Mermaid Beach spend $1733 on monthly mortgage repayments and the average income is $1463! Many are trapped in a life sentence of debt with high interests and deposits and are restarting their loans although they have paid years of mortgages.People can get more options for loans at cheaper rates. What’s more, online lenders can get more active of offering property loans without the hassles of a personal visit to brick and mortar banks.