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I hope Nab's changes stick and they don't implement further servicing changes. The 28% loading isn't too bad (relatively speaking) - the extra supporting docs is a pain though.

Nah there's a general move to capping IP loans at 90% inclusive of LMI....which is basically 88% + LMI Cheers Jamie

There's your problem. Spread the love among banks with some structured lending and you won't hit a servicing wall so quickly. Even with tighter servicing calcs - you should be able to squeeze some more out by using different lenders. Cheers Jamie

Adelaide are still one of the few lenders that take OFI debt at actual rather than an inflated assessment rate. On that basis I wouldn't use them first up - WBC would be a better option. However- that could change tomorrow given the current environment. Cheers Jamie

Just got word that they will reduce LVR's on IP loans - but it will be higher than 80% Changes coming within next couple of weeks Cheers Jamie

Never a lender I turned too - but that's going to change! Whichever lenders continue to assess OFI at actual are going to be inundated with IP loans. Cheers Jamie

Hey Euro Any word on expected servicing changes for them? Cheers Jamie

They haven't been popular for a quite a while (way before the recent changes). There's a few lenders that will still do 95% incl of LMI which is basically a 92% lend with LMI added on top. However - there's often certain criteria that needs to be met (you may have to demonstrate that you...

Realistically that's just one bankers prediction. While I agree that it will likely blow over - I doubt anyone's got an accurate insight as to when that will occur. Cheers Jamie

Yep - they've stopped "discretionary" discounts on IP rates. The other majors have too - which is funny because ANZ seem to be copping all the media. They haven't changed the way they calculate borrowing capacity though - which was never that generous.....but in line with everyone else now...

Advantedge are getting on board with OFI assessment rates as of early next month......so who do we have still standing that's a "generous lender" ...... Has ABL made an announcement yet? In a twisted turn of events...ANZ may end up being one of the generous ones! Cheers Jamie

Really good questions. I think STG will introduce no discounts on IP loans soon. I also think it's only a matter of time before NAB changes it's servicing calc. Both will prob be announced within the next couple of weeks. I haven't heard anything specifically. Cheers Jamie

It depends on the bank. Generally banks that allow for negative gearing in borrowing capacity calculations take into account all investment loans. Cheers Jamie

Agreed. It's the wrong approach. Deals that are in pre-approval status should be honoured. Cheers Jamie

It's hard to say - and that's one of the unfortunate risks of OTP. Lending policies can change and markets can dip. Cheers Jamie

There's a few. Off the top of my head - ANZ and Macquarie will. There are others but I can't remember who. Cheers Jamie

Yep - that's how I read it too...and if so, I agree. Good brokers will become more valuable as lending criteria tightens. Cheers Jamie