To help us explain these we spoke with Joseph Pham, franchisee for mortgage brokers Aussie in Woden.

“The lending environment has changed a lot” begins Joseph, “mainly because the government regulatory bodies have changed what the banks can do.”

He told us that the Australian Prudential Regulation Authority has implemented two restrictions of particular significance to investment borrowers.

First up, mortgage lenders are limited to how much of their total new lending on residential property can be on interest-only loans. That cap is now set at 30%.

Therefore, the remainder of the new funds they lend on residential properties have to be re-payed with principal as well.

APRA’s other restriction was to place a 10 per cent benchmark for growth in lending to residential property investors.

In simple terms, “this limits how many investment loans they can do as well.”

These, and other measures, are intended to limit the growth rate of the Australian property market.

“With those changes, borrowers need to shop around quite a bit” because the mortgage lenders have responded in ways that, either directly or indirectly, increase the cost of investment borrowing.

As a consequence of these caps to lending, “We’ve seen situations where some institutions have had to stop lending on investments for six months.”

The other measure that many have taken is “Repricing their investment loan rates, to both new and existing customers.”

That makes it vitally important to shop around on a reoccurring basis.

Since “lenders can’t take on more than their limit of investors they are increasing their rates, so that's the main thing you need to know.”

That also means “You need to see if your rates are still competitive” Joseph illustrates.

You can find your nearest Aussie mortgage broker by visiting www.aussie.com.au.