Banks ‘really conservative’ after royal commission

It is turning out to be progressively difficult for property purchasers to get a home loan in the wake of the royal commission, as spooked banks are becoming increasingly protective and conservative with their lending.

The response from the banks has been prompt and the banks are taking a very firm-line black and white approach.

The largest area currently hit by the royal commission is assessment of living expenses this means that borrowers won't have as much capacity to borrow as they need to factor in additional expenses.

This coupled with the APRA changes of December 2014 means that its getting tighter for property investors. This is expected to continue for the next 12 months at least.

For this reason choosing the right Mortgage Broker is all the more critical. The best mortgage brokers know how to present and package a loan in the best possible manner and also have preferential relationships to expedite and stream line the process.

If you are needing expert advice to deliver the right finance & mortgage solutions to suit your personal and business needs, call 1st City's Fund + Protect now.

John Ganderton

Credit Adviser

P | 8315 2046

E | john.ganderton@1stcity.com.au