Ep. 244 | Borrowing Power in 2019: Everything You Need To Know
08.08.2019 - By The Property Couch
APRA has recently made changes that affect a lender’s borrowing power — what does this mean for property investors and home owners… and their interest rate?
Well, folks… we’re deep diving on this today (and getting a little bit technical), because in July 2019, the Australian Prudential Regulation Authority (APRA) came out with their revisions to the “buffer” and “floor rates” of their Prudential Practice Guide APG 223.
And why are we telling you this? In a nutshell: this results in a change, potentially an increase, in a lender’s borrowing power… which means YOU can potentially borrow more money!!! (Not sure why this is a good thing? Listen to this episode on the basics of borrowing power first).
Now, if you’re wondering what on earth we mean by “buffer, “floor rates” and “potentially”… take it easy… we’ve totally got you covered here — we explain all this, incl. examples of a single person AND a couple, so you can get a “real life” angle on all this. Plus, Ben’s obviously in his element so he drops a lot of new gold and mortgage broking insights!
Oh, and did we mention that we’ve also sneaked in a little Finance Q&A; as well?? Yep, true story. You can find the exact questions a little further down in these show notes