Small Lender CUA put a stop on Investment lending

Discussion in 'Loans & Mortgage Brokers' started by teetotal, 2nd Jul, 2017.

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  1. teetotal

    teetotal Well-Known Member

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    Just came across this one while going through different lender websites.
    CUA has put a "temporary" stop on Investor Lending.

    What do people think are the chances of this happening at a Large scale? where Big4 also stop Investor lendings.

    Temporary changes to investor lending
     
    teetotal, 2nd Jul, 2017
    #1
  2. Richard Taylor

    Richard Taylor Well-Known Member

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    That was 3 months ago CUA pulled out.
     
    Richard Taylor, 2nd Jul, 2017
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  3. teetotal

    teetotal Well-Known Member

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    Do you reckon this can happen with the Big 4 ?
    What can an investor do in case that all Banks stop investor lending ?
    Probably need to do some scenario planning, ahead of time.

    What comes to mind are the strategies like moving into every new purchased property and making it a PPOR. However that's also difficult because you need to provide proof of ongoing income to Bank in case property is interstate. It'll be ok if property is in same city.

    What else one can do ?
     
    teetotal, 2nd Jul, 2017
    #3
  4. bob shovel

    bob shovel Well-Known Member

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    Those credit unions are very risk obverse when it comes to investments so no game changer imo
    I made the mistake dealing with a credit union years ago. I had trouble getting finance for <200k cash flow pos property in Sydney
     
    bob shovel, 2nd Jul, 2017
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  5. Corey Batt

    Corey Batt Well-Known Member

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    They just put the brakes on investment lending so they can bring their new business volumes below the upper caps being dictated to them by the government.

    Banks will continue lending money to investors - it's just about using the right lender at the right time more than ever. No point walking into your 'usual' bank for finance if they've limited investment lending or upped the costs of their product to shy people away from using their services.
     
    Corey Batt, 3rd Jul, 2017
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