Last week the Federal Government announced its plans to wind back tight regulations that have stopped many home buyers from obtaining finance, a move set to bring make things much easier for those looking to purchase property or build their dream home.
While low interest rates have kept mortgages affordable, many would-be borrowers are still prevented from accessing money as a result of the restrictive and complex regulations introduced after the 2018 banking Royal Commission. As lenders became increasingly risk averse over the past couple of years, some borrowers have experienced a challenging, drawn-out, and at times intrusive approval process, with the Reserve Bank of Australia agreeing that tight regulatory provisions have prevented credit growth for some time.
The government’s position is that lending reforms will be in effect from March 2021, if passed in Parliament, and will significantly simplify the loan application process which will not only increase access to finance, but make the process much quicker whilst boosting our economy.
It’s time to start drawing up the new house plans!
