It’s about to become a lot easier to borrow! The big winners from the election…

While we are unsure when these changes will take effect, here’s what we know is going to happen…

Soon banks are going to be able to lend more money as APRA (Australian Prudential Regulation Authority) relaxes its current assessment rate of 7.25%, with new arrangements which will allow banks to be able to asses on 6% or 7% rather than 7.25%. This means more affordability and more fluidity. Great news for buyers and sellers alike. It may mean some purchasers will have the capacity to borrow up to 10% more, enough to have a very positive impact on the Central Coast property market.

The real big winners are first home buyers. Ordinarily, a typical first home buyer – a couple with an combined income of up to $200,000 or an individual with a single income of up to $125,000 – would have had to have had a 20% deposit to avoid paying lenders mortgage insurance. Now under a government initiative, those first home buyers will only require to have a 5% deposit to be exempt from LMI. A big win and a much easier entry into the market for first home buyers.