Lender strain, APRA scrutiny, and FHB frenzy: Navigating the market

In this episode of The Smart Property Investment Show, Phil Tarrant is joined by Annie Kane, managing editor of mortgages, and Liam Garman, managing editor of real estate. The host and the Momentum Media editors explore the complexities of the current Australian property market.

They examine how government schemes, including the expanded 5% Deposit Scheme, are driving demand but causing delays as lenders struggle to keep up.

Kane highlights that brokers are the main channel for the scheme, but overwhelming demand has led some lenders to pause pre-approvals.

Tarrant raises concerns that the scheme could encourage unsustainable debt levels among first-time buyers. Investor lending is also on the rise, with the Australian Prudential Regulation Authority (APRA) monitoring trends and considering measures to curb high debt-to-income ratios and rapid investor lending.

Garman points to supply-demand pressures exacerbated by migration and infrastructure, warning of potential negative equity for some buyers.

The discussion also covers the role of buyer's agents, emphasising the importance of choosing licensed professionals to avoid costly advice missteps.

As the market evolves, the trio notes that navigating government interventions, lending practices, and ongoing supply-demand imbalances will be critical for both investors and home buyers. If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, X (formerly Twitter) and LinkedIn. If you would like to get in touch with our team, email editor@smartpropertyinvestment.com.au for more insights, or hear your voice on the show by recording a question below.