The proposed tightening of lending criteria has also driven some vendors to bring forward their plans to list their properties. Some analysts predict there will be a reduction in buyers once the new rules take effect. At the same time buyers who want to borrow the maximum amount are rushing to gain pre-approvals before the new regulations kick in from 1 November.
Under the new rules, borrowers will be assessed to ensure they can service a loan with interest rates 3% igher; the buffer was previously 2.5%.
The CBA says the changes will affect only a small number of borrowers, as only 8% of applicants are seeking to borrow the maximum amount. Those who obtain pre approval under the old criteria before November 1 will have 90 days to use that pre- approval before it expires.
Shore Financial chief executive Theo Chambers says those who have procrastinated about buying are now feeling a sense of urgency.