Little headline – big impact?
Westpac, ANZ and CBA have changed their lending policies to non-resident borrowers, those that are self employed and for those that due qualify the LVR has reduced from 80% to 70% max. Will this change the level of demand from Chinese nationals for Australian residential property? “According to the latest NAB Quarterly Australian Residential Property Survey, the share of demand coming from foreign buyers fell to a two-and-a-half-year low of 11.8 per cent, down from a peak of 16.8 per cent in the third quarter of 2014.” Will this make housing more affordable without these buyers who seem less sensitive to price?
“The major bank confirmed in a statement yesterday that it has made changes to its non-resident lending policy, effective this week.
Westpac, St George, Bank of Melbourne and BankSA will no longer accept mortgage applications from non-residents. The banks will also no longer accept any foreign self-employed income applications or applications from temporary visa holders living overseas.
In addition, LVRs for acceptable domestic applications with foreign income will be reduced from 80 per cent to 70 per cent.”