There has been some major changes to the banking industry in response to the Royal Commission… but what impact has that had on the real estate industry and more specifically, lending for rent rolls.
I recently caught up with Justin Dickinson, managing director of HoLo – an expert mortgage broking firm for a snapshot on lenders attitudes to rent roll acquisitions.
Justin indicated there is definitely still an appetite for lending on rent rolls. Whilst there has been some tweaking of policies and tightening on conditions, lenders are still very keen for the business.
Lending ratios are very important and have an impact on lenders appetite. The market is still seeing some lending at 50% of the rent roll’s value but others are at 60% -70% and even higher in the right circumstances – which is great news.
Watch our discussion here for more information and some great tips on submitting a successful lending application.
If you would like to have a no-obligation discussion regarding the market, please contact businessDEPOT Agency Broking.