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RAMS is quite good.

The lending restrictions haven't really been Sydney specific and other states of felt the consequences. I think ING is the only one with any real Sydney specific policy. Also the stats don't show much of a dent in appetite. You don't need to be a neurosurgeon to figure out that there...

Ouch hopefully people see this and realise the risks associated with fixing.

Im talking about borrowing capacity not deposit winds

I dont want you to be crapping your pants at midnight so don't get alarmed just make sure you talk to your broker tomorrow and have a strategy for potential shortfall in servicing (or value).

NAB hasn't confirmed the date but its gotta happen very soon. So if you are going to do anything with NAB (i.e. equity release) then do it NOW! I have been literally working till 2am each night doing equity release with Macquarie and NAB. Please understand that these changes are not a...

27 percento

It means we are on a rather level playing field - certainly now more than ever. This draws the focus on other areas of lending such as policy (cash out, IO, LMI policy, etc).

Anyone that has purchased an OTP needs to talk to their brokers ASAP and make sure they are preparing for these changes. They are going to potentially require some serious buffers.

Mac is about to make the following changes: 1. Benchmark rates on all existing and other lender debts 2. Tighter cash out policies 3. HEM living expenses So I just did one for a customer where their borrowing capacity dropped $320,000 based on the new changes. NAB are about to make...

The ships already sailed on that and in reality they weren't competitive anyway in that space.

Update on Westpac: 1. Increased living expense calculation = decreased borrowing capacity 2. No longer allow for negative gearing benefits = decreased borrowing capacity

Yesaroonie posatoonie.

The technical term is "kick to the go-nads'.

Bankwest changes: The following changes will apply to all new applications, pre-approvals moving to formal approvals and applications being re-assessed for a material change. The maximum Loan to Value ratio (LVR) will be 80% for any loan for investment purposes, including the purchase of...

Its the opposite - the bank wants to make it harder for people to increase their LVR. Big brother wants to see people physically paying down their loans and in turn the LVR. We are going to see a lot more of LVR based policies, pricing, etc.

These investors have spent a good part of the last 24 months doing regular equity releases at 90% LVR, IO with no or limited explanation/documentation. This has/is going to change so if they are unaware of these changes then they are in for a rude shock.

Yep pretty much nailed it. This is why a CG strategy is much more important than yield play. There are heaps of ways to increase your income but not capital. From a finance equity perspective You are already in negative CG if you have done your loan at a 95% LVR and can only top up to...

Its not black and white and there is no textbook as to how lenders are going to treat this. It will be very difficult to do equity releases up to 90% - this will come by way of: 1. Credit scoring - straight out decline based on how each lender has tightened their credit scoring 2. Credit...

Winter is definitely coming for those who have been doing equity releases up to 90%, IO and rather tight servicing (heaps of those in the past 12-18 months). Decent opportunity for those who are cashed up and have decent servicing.