More lenders tighten apartment lending

From the AFR:

More lenders are discreetly toughening borrowing conditions amid growing concerns about over-supply, falling demand and off-the-plan buyers capacity to complete purchases.

Credit Union Australia is putting the squeeze on strata-titled unit or apartments located in buildings of six more floors or with more than 50 units.

…Firstmac, a non-bank lender, has also tightened lending for apartments in developments with more than six floors. It has also excluded rental income for servicing the loan.

…Australian First Mortgage, a non-bank lender, is toughening lending for outer-suburban estates.

Drip, drip, drip…

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.