We came across an interesting article in this morning’s Age which implied that we could be seeing the emergence of a two tiered borrowing structure in Australia.
Home owners paying off a mortgage on the house they live in would pay a lower mortgage rate than those borrowing for investment purposes. This move, which we understand is supported by APRA, is designed to limit credit growth particularly in the property market. While details remain very sketchy anything that will help to take steam out of what is an over heated market is worthy of consideration.
Watch this space.