Banks are putting the brakes on lending to property investors but owner-occupiers are being offered some of the sharpest deals in the market.

Owner-occupiers who make prinipale and interest repayments are being targeted with lower advertised interest rates and cash-back offers, and as we have found there can be abaility to negotiate bigger discounts - but only for occupied lending. 

Banks are also offering "cash back" offers targeted at owner-occupiers.

We are seeing the same in the fixed rate market with different pricing between owner-occupied lending.

The reason is recent pressure applied to the banks by both APRA and ASIC to cool investment lending which has primarily built up in the Sydney market. But rather than take a targeted approach to the Sydney market APRA in particular has a dopted a broad brush approach.

My own view? The actions by APRA in particular are a bit late in the game. APRA have sat back for the last 2 years and let the Sydney market run riot and have only brought changes in at a time when Sydney is already showing signs of cooling. But no doubt they will pat themselves on the back for a job well done.

While their can be some good deals on offer chasing the cheapest rate can have plenty of pitfalls. There's a fair bit of change in the market at present and what looks like a good deal today might not be that great tomorrow. So it makes sense to get a proper review of your full situation to determine what is going to be the most appropriate structure for you and what the actual costs are.

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