NAB has become the third major lender to announce tightened lending conditions for foreign buyers.
The new rules, which came into effect on 14 May, will see NAB only lend 60% of a property’s value to foreign buyers, down from 70% previously.
In addition, the major bank will recognise just 60% of foreign income sources, will no longer be accepting foreign sourced self-employed income, and will be tightening income verification requirements.
In a statement provided to Your Investment Property
's sister publication, Australian Broker
, a NAB spokesperson said: “All foreign home loan applications are considered on a case by case basis and assessed under strict verification standards for employment and income, as well undertaking stringent risk processes.
“These settings are continually reviewed, and controls are tightened where necessary. NAB has limited appetite for this segment which comprises less than 2% of the NAB book.”
One mortgage broker, who asked to remain anonymous, also told the AFR
that NAB would not be approving any loans to foreign buyers in “high-risk” areas.
These suburbs have yet to be identified, according to the AFR
, but are expected to be inner-city areas in Melbourne and Sydney where there is a surplus of newly built apartments.
NAB’s decision follows announcements by Westpac and ANZ that they will be investigating mortgages backed by questionable foreign-income documentation
, which forced them to stop approving such loans last month.
Bank and Citigroup have also tightened lending conditions for foreign borrowers
in the past week.
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker
Top Suburbs :
east victoria park
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out