Lower Deposits For Investors The big banks are starting to improve lending terms for investors, in an effort to enthuse them back into the market.
The Commonwealth Bank has announced it will allow investors to take out loans with deposits as low as 5%, as long as they take out a principal and interest loan.
Previously it required a 10% deposit.
RateCity research director Sally Tindall says the move shows the bank is confident investors can meet higher interest rates because rents have increased so substantially.
“(CBA) have determined the risk and considered it’s appropriate to lend to investors with such small deposits,” she says.
“With vacancy rates at historic lows, investors are unlikely to be struggling for a tenant – a far cry from just two years ago when many investors were offering tenants reduced rents to help them get through lockdown.”
ANZ also offers a 5% deposit loan with both principal-and-interest or interest-only terms and Westpac has a low-deposit loan for some investors.
