Get a Pre-Approval Now before Loan Restrictions are Imposed (25th July 2013)
It appears the Reserve Bank will proceed with restrictions on maximum loan to value ratios, which will affect first home buyers. Nothing has been announced yet, but it is thought that banks will be forced to limit the number of low equity home loans they can write. Low equity lending is generally regarded as over 80% loan to value ratio, or LVR. If you are a first home buyer with less than a 20% deposit, you could potentially be affected by this.
You may be wondering if banks will be allowed to honour existing pre-approvals after the changes are imposed. Nobody knows the answer to that question, but my advice is:- if you don't have a written pre-approval in place yet, and you have less than a 20% deposit, I would highly recommend arranging one now, before changes are imposed.
Contact me at firstname.lastname@example.org for more information.