Loan availability now much easier

Loans will now be much easier to get now that the assessment rate floor has been dropped across all banks. The rate has been dropped from 7.5 % down to as low as 5.3% with Macquarie bank. By dropping the floor rate it means that servicing for loans become much easier. Prior to the floor rate drop it was at 7.5% meaning that even though someone may only be paying interest of 3.5%, if that customer wanted to get another loan, the bank would treat that loan as though the customer were paying 7.5%. This has kept a lot of investors out of the market.

With the changes and the easier access to finance, the property market should show some strong green shoots in certain areas.