When looking ahead at what 2019 will bring, many in the industry believe that it will continue to be a turbulent year for property investors.

“We’re seeing an increasing number of borrowers being frustrated by cumbersome, slow and unclear approval processes and policies by major banks,” says Heidi Armstrong from Liberty.

“That means there are a lot more borrowers who are on the cusp of qualifying for a traditional loan, but who find themselves needing a custom lending solution. There could be all sorts of reasons for this including a small, non-financial blemish on their credit history, criteria such as employment length or even spending habits seen in bank statements.”

As a result, non-bank lenders have “increased in relevance in recent years”, Armstrong says, because they offer “helpful solutions right across the lending spectrum”.

The need for investors to be savvy in their research while remaining open to all options on the table is a trend that is expected to continue – as the one thing that everyone agrees on is the fact that the situation we have now is “the new normal”.  

“The major lenders are unlikely to soften their policies, and may even become more restrictive as a result of the royal commission’s recommendations,” says Royden D’Vaz form Bluestone.

“In the meantime, more and more interest only loans are set to expire, leaving many investors keen to refinance their loans, which will continue to be difficult.”

For property investors, the most important takeaway for the coming year should be that valid options are still out there, D’Vaz adds.

“Keep looking for a lender who is willing to help if you can’t find a solution with your existing bank. The coming year may bring continued upheaval to the sector, but with the right strategy and the right support, there is potential for great opportunity among the chaos,” he says.

For the full story, including a full investigation into the credit crisis and strategies to help you get a loan in 2019, read the complete feature article in the March 2019 edition of Your Investment Property magazine.

On sale at news agencies and Coles supermarkets February 14th to March 14th 2019, or download the magazine now.