Powered by MOMENTUM MEDIA
subscribe to our newsletter

Mortgage investors to profit from APRA curbs

Australian fund manager Merricks Capital believes Australian investors could be the beneficiaries of recent changes in loan regulation.

APRA’s macroprudential measures, which started in 2014 with a 10 per cent cap on investor lending growth and more recently included limits on interest-only lending, have driven borrowing rates higher.

Rate hikes are expected to feed directly into higher investment returns on commercial mortgage lending vehicles, such as the Merricks Capital Partners Fund, which is earning in excess of 10 per cent annualised before fees.

Merricks Capital chief investment officer Adrian Redlich describes the knock-on effect as a positive for mortgage investors, particularly those in the high-quality segment of the loan market.

“With the major banks now stepping away from investment lending, a void has been created and the lack of viable financing alternatives has seen a number of very attractive investment opportunities emerge,” Mr Redlich said.

Advertisement
Advertisement

PROMOTED CONTENT


The key to insuring investors can actually capitalise on the current lending landscape comes down to loan quality, says Merricks’ COO Adam Lindell. Relatively low LVRs, a strong network of “independent originators” are also essential, he says.

[Related: Aggregator warns brokers of major industry changes]

Mortgage investors to profit from APRA curbs
mortgagebusiness

Latest News

OPINION: Debt-to-income ratio limits: do they help, or hinder? With the average property in Australian capital cities now over $700,000, l...

The Treasurer has met with regulators to discuss the housing market and consider whether “carefully targeted and timely adjustments” ...

The platform has become the first private sector exchange accredited under the ​​Trusted Digital Identity Framework. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.