Lifting the Caps
For those who don’t know, the APRA created a couple of caps in recent years.
The first was a growth cap for investment lending. All lenders had to restrict the growth of this aspect of their businesses to 10% or less.
The end result was that you had access to fewer investment loans.
The APRA followed that up with a second cap. This one limited interest-only loans so that they could only account for 30% of a lender’s output.
Again, that meant fewer options open to you as an investor.
In 2019, we’ve seen both of those caps get lifted.