95 lends
- Thread starter zimby
- Start date
Yes that is true. One bank however has eased up slightly. Macquarie now allow 95% lends for investment properties where previously it was only owner occ.
some others that used to allow LMI on top of 95% no longer do.
Lenders that are or were generous in their 95% plus LVR lending (such as Suncorp) are scaling back to balance their books.
Using Suncorp as the example, their book is full of 95% loans hence they are placing premiums and restrictions on 95% loans and providing good discounts on 80% loans in order to balance their books otherwise lenders run the risk of losing their AA or A+ ratings.
Using Suncorp as the example, their book is full of 95% loans hence they are placing premiums and restrictions on 95% loans and providing good discounts on 80% loans in order to balance their books otherwise lenders run the risk of losing their AA or A+ ratings.
Yes but they place a premium on these loans and you need to have 1.20 servicing which I interpret as "yes we are prepared to lend you money at 95% but you need to be an excellent customer and we will charge you more on the rate to cover our risk (even though you are an excellent customer)". Plus you will need Genworth sign off so can't see them as a first or second choice for 95% lending.
95% deals are scrutinised a lot heavier.
I agree with Shahin - it seems that those lenders willing to fund 95% deals in the past are now balancing their books and are moving away from that space.
If doing a 95% lend, I prefer to place with them with a lender that has a DUA up to that LVR.
Cheers
Jamie
I agree with Shahin - it seems that those lenders willing to fund 95% deals in the past are now balancing their books and are moving away from that space.
If doing a 95% lend, I prefer to place with them with a lender that has a DUA up to that LVR.
Cheers
Jamie
should be fine as long as total LMI exp is less than a mill, and you have 10 % equity all round
ta
rolf
So who do you go to now for a 95er?
For owner occ or investment?
ING under their Reduced Equity Fee can be a good option for owner occ. Same with CBA under their DUA.
Bankwest used to be good but I'm told they credit score 95% lends more harshly these days (though I haven't personally tested in a while).
Cheers
Jamie
No "absolute" list it comes down to the file, client, property type, yield, credit score and interest rate..
if it's max 95 ( ie inclusive of lMI)
1. Bankwest - Good serviceability required and not highly leverage....BW still offers a good rate for 95ers
2. St George - A no go if you have more than 3 credit hits in the last 12 month, very strict credit scoring - also a decent rate at 95 but LMi is 11-14% more than average
3. Homeside/NAB - Prefer existing client of NAB, a bit more relax in terms of credit scoring but still no rejection or paid defaults etc...rate can be a bit step
4. ANZ - Existing customers only
5. CBA- Good for your FHB with a credit score of 700 or above. Flexible genuine savings policy and LMI cost is quite good./
6. ING - Strict employment and income requirements, needs perfect credit report- discount on LMI available so overall can save a few $$ with their REF.
the list is endless- suncorp, Adelaide bank, AMP, Westpac, Me Bank, Gateway, WIde bay etc....
Rather than look for the bank and trying to "fit the banks requirement"....it's easier to find the bank that fits YOUR requirement.
Some of the non banks and credit unions tends to shine in this instance.
Example Liberty financial.
Also ANZ, Suncorp and BW does it but either it's for existing clients only or it comes with some very strict criterias
closer to 91.80%, passed the mill mark with this one, 20%,10% equity.
893 Credit score.
Have the funds to bring it down to 90% but why put this into the loan if not required.
How relevant are the scores these days? Word on the street is that not all banks using the scoring.
You must live on the same street as some of the desperate house wives... " optimistic st"
Credit scoring is important for a majority and when i say majority i mean 39/45 lenders in the 90% LVR space....
Beyond my risk appetite
Goes from a lender that wants to write good quality business to Genworth who want to mitigate risk.
Could have been better risk managed possibly
ta
rolf
Did you run through the difference in LMI for 91% & 90%?
ANZ for existing customers, to 97% max
