Tighter lending restrictions are driving more property investors to seek assistance from a mortgage broker, a new survey has found.
The third annual Property Investor Sentiment Survey by Property Investment Professionals of Australia (PIPA) revealed that 73% of investors have used a broker. This was up from 65% two years earlier.
The report also found that over the next 12 months, 83% of investors intend to use a broker when seeking their next loan â€“ an increase from the 71% recorded in last year’s survey.
While lending restrictions may have removed some speculation out of the market, they are preventing investors from building their financial futures and adding to rental supply, PIPA chair Ben Kingsley said.
“Our survey results show that rather than be defeated, educated property investors are opting to use professionals to assist them to achieve their goals â€“ regardless of the lending environment.”
Other key statistics from the PIPA survey include:
- 68% of investors think that higher interest rates for investors compared to owner occupiers is unfair
- 38% of investors had no difficulty in refinancing despite tighter standards
- 22% of investors said they are having difficulty refinancing
- 30% of investors have either switched or intend to switch from interest-only to principal and interest given higher rates
The survey polled results from more than 740 property investors around Australia.
Miklos Bolza, Australian Broker, 27 October 2017