Good news for local buyers! The tightening of banks lending policy to foreign lenders will make it easier for Australian residents to borrow money to buy property. In a report by Sophie Elsworth for Herald Sun ‘Home run for locals’, “temporary residents not earning an income in Australia will no longer be able to get a home loan from the Commonwealth Bank”.
According to Mortgage broking firm Home Loan Expert’s managing director Otto Dargon the reason for this is “banks are worried because there’s been a large number of borrowers faking an offshore income to get a home loan”.
Foreign buyers can still buy properties but their choice of lenders is limited for instance Westpac regularly review its non-residential lending and the National Australia Bank lends to temporary residents with foreign income however it is on a case-by-case basis.
According to the Foreign Investment Review Board $97 billion of foreign real estate investment was authorised in 2014-2015.
Read the article ‘Home run for locals’ by the Herald Sun to find out more on changes to CBA’s lending policy and the banks that finance to temporary residents with foreign incomes.