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You forgot to mention that neg gearing will be removed at higher LVR's :)

Just announced they are adding 2.25% buffer to their assessment of OFI debt. They haven't removed neg gearing though, which WBC did

STG to add 2.25% to your actual rate - effective June 22 Adelaide to add 2.25% to your actual rate - effective July 4.

ANZ have now joined the party with some relatively modest tweaks to their servicing calc. Previously they added 2.25% to your actual rate when assessing capacity. Now it will be 2.75%

Your post implies you understand the implications, which in turn means you already know the answer to your own question :)

This will continue to evolve as APRA monitors the impact of the changes. The I/O heavy books didn't happen overnight and the rebalancing of those books towards P&I wont happen overnight either.... As I have said before and will say again - get to know names like Adelaide Bank and Firstmac...

Try and look at it like this. APRA is concerned about too much systemic risk being caused by too much I/O debt. Those lenders with either A. A real imbalance of I/O debt v P&I debt or B. Greater than 10% year on year I/O growth have attracted APRA's attention. Westpac and CBA are top...

2nd mortgage :)

Correct .... Ultimately, you can use FM effectively for high quality deals . You cant use them for "near enough is good enough" like the majors often take on.... securitised or not - they will be the best way to save many investors bacon in the time ahead. Lazy brokers wont enjoy...

Most the 2nd tier and non banks are already quite conservative, policy wise. They may offer good borrowing capacity, but they still only do vanilla, full doc business. Just try writing a deal with any hairs on it at all, with Firstmac for example. Squeaky clean, vanilla stuff only. No in...

I think the 2nd tier and non banks have such small market share that even if it tripled tomorrow, it would still be an insignificant percentage of the market. In the end, if brokers and customers do divert business towards the 2nd tiers and non banks it's probable they will raise APRA's...

Ok, so CBA is the lesser of the 4 evils :) But still well off the pace in the new lending landscape. I'll give you an example - FM and ABL will currently take actuals on OFI debt . Lets say you have $2 Million @ 4.2% and it is assessed that way vs CBA assessing the same $2 Million @...

Forget the Big 4 if you are looking for a generous calculator. APRA has taken it's heel and planted it firmly on their necks. Mere mortal investors without superpower incomes capable of leaping 7-8% assessment rates on all borrowings need to learn names like Firstmac and Adelaide Bank now, or...

So the lay of the land now ... Everyone is , or soon will be assessing debt at 7% - 7.5%. This will have a material impact on a majority of investors. Not all, but certainly most. If you have $2million in debt at 4.2% for example, some banks assessed that as a 84K liability last week...

I think you'll find they have a pretty healthily P & I biased book, and also a pretty healthy bias towards sub 80%, due to loans.com.au , which attracts a lot of sub 80% P & I.

No changes planned. I have checked and triple checked. That can change of course, but for now- make hay while the sun shines. Assessment rate of 8%. 80% of rent accepted, neg gearing accepted, actuals on OFI accepted. 4.19% variable. $295 annual fee. 10 sub accounts available, each...

ALL the banks will be just about same same, give or take a smidge. They will all be assessing all debt at 7% or thereabouts. The non banks will be the best bet now for borrowing capacity... They continue to use neg gearing and actuals on OFI debt so they are streets ahead .

You need to talk to your broker about firstmac. They are still doing actuals and neg gearing.

I think its as simple as this - LVR's and borrowing capacity determine the budgets available to buyers, which determines how much buyers can spend. When that is curtailed in any meaningful way across a significant part of any market, it will slow things down in a meaningful way.

This is unlikely I think. APRA has been working on this since mid last year, and some changes started occurring in November and December of last year, with some banks. This is not a short term thing. T