95% + LMI get done all the time, but I don't think I would say it's no big deal. These are the sort of deal where there's no margin for error.
I wouldn't recommend ANZ for this type of loan either.
95% loan
- Thread starter ugotadollar4me
- Start date
95% + LMI get done all the time, but I don't think I would say it's no big deal. These are the sort of deal where there's no margin for error.
I wouldn't recommend ANZ for this type of loan either.
I'd want to know more about your financial situation, needs and goals to be specific. I wouldn't recommend ANZ because whilst they're keen for business, they do have a number of conservative policies which generally makes me nervous for 95% loans.
Thse comments could also be my bias based on experience with ANZ vs experience with other lenders. Other brokers may have different experiences and may recommend ANZ. Your existing broker understands your position better than anyone here. If you trust his advice, then take it.
Hmm, interesting. Care to elaborate? We've been with ANZ for about 8-9 years, and our broker has been quite positive towards ANZ. However, for our next purchase (coming up reallly quickly, we hope - upgrade PPOR), it looks like this loan will be with Westpac (or Wesuck as Rolf likes
).Do you think this will be purely an exposure thing ($1M+) or an "ANZ used to be good" thing?
I actually don't have a problem with ANZ in general. They have some quite conservative policies which is why I'm not keen on using them in many circumstances, especially 95% loans.
Despite having conservative policies, they are a reasonably easy to measure. From a brokers perspective they're reasonably open about their timeframes and service levels. It's not too difficult to communicate directly with the credit officer.
They're also reasonably clear about their policies, procedures and pricing. They can be difficult to deal with for many people, but they communicate what they're looking for. If you don't meet those criteria, don't even bother. If you do meet the criteria you should be fine. Their rates have also been consistantly compeditive.
As for the other major banks...
Westpac seems to me that they're a bit desperate for business. Their turn around times are very good and sometimes it feels to me that they'll approve almost anything, but occassionaly they won't and it's hard to tell when that'll be. I've seen average looking deals go straight through and great looking deals get knocked back. Their pricing is also most expensive of the big banks and has been for several years now.
CBA isn't great service right now, but it's the wrong time of the year to be asking for fast loan approvals. They actually work pretty hard on this most of the time. Their lending criteria is reasonably generous but they constantly tweek things. This gets pretty annoying. Rates are pretty good, but FFS, when will they get a real offset account?
NAB. I like HomeSide (the broker section), but not NAB direct. There doesn't seem to be anything consistant about them from where I stand. It could just be the small group I've been unfortunate to enought to deal with, but every NAB applicaiton I've lodged has been way more difficult than it has to be. HomeSide has made some big improvements and are predictable to deal with, but NAB can be touch and go. My biggest problem is they tend to tell you it's approved when it's not done yet.
Despite having conservative policies, they are a reasonably easy to measure. From a brokers perspective they're reasonably open about their timeframes and service levels. It's not too difficult to communicate directly with the credit officer.
They're also reasonably clear about their policies, procedures and pricing. They can be difficult to deal with for many people, but they communicate what they're looking for. If you don't meet those criteria, don't even bother. If you do meet the criteria you should be fine. Their rates have also been consistantly compeditive.
As for the other major banks...
Westpac seems to me that they're a bit desperate for business. Their turn around times are very good and sometimes it feels to me that they'll approve almost anything, but occassionaly they won't and it's hard to tell when that'll be. I've seen average looking deals go straight through and great looking deals get knocked back. Their pricing is also most expensive of the big banks and has been for several years now.
CBA isn't great service right now, but it's the wrong time of the year to be asking for fast loan approvals. They actually work pretty hard on this most of the time. Their lending criteria is reasonably generous but they constantly tweek things. This gets pretty annoying. Rates are pretty good, but FFS, when will they get a real offset account?
NAB. I like HomeSide (the broker section), but not NAB direct. There doesn't seem to be anything consistant about them from where I stand. It could just be the small group I've been unfortunate to enought to deal with, but every NAB applicaiton I've lodged has been way more difficult than it has to be. HomeSide has made some big improvements and are predictable to deal with, but NAB can be touch and go. My biggest problem is they tend to tell you it's approved when it's not done yet.
Hmm, interesting. Care to elaborate? We've been with ANZ for about 8-9 years, and our broker has been quite positive towards ANZ. However, for our next purchase (coming up reallly quickly, we hope - upgrade PPOR), it looks like this loan will be with Westpac (or Wesuck as Rolf likes
Do you think this will be purely an exposure thing ($1M+) or an "ANZ used to be good" thing?
I've noticed that the staff they use these days are more and more incompetent. It just makes doing deals with them so frustrating. The exposure thing is common across all banks.
Deals getting assessed in Bangalore doesn't improve things really (except maybe ANZ's bottom line).
Agreed Marty, but if it's a complex deal and you've got a good relationship with your BDM, it's not hard to get the assessment reassigned locally.
Conceptually, a 95 % lend should be no more difficult than a 90 % with the same lender if the policy allows it.
The problem is that the shape of the hurdles from 90 to 95 isnt linear............in some cases what will be easliy passed at 90 % gets knocked on the head at 95 % because of some weird and possibly small thing .
I for one find owner occ 95s easy compared to IP 95s
ta
rolf
The problem is that the shape of the hurdles from 90 to 95 isnt linear............in some cases what will be easliy passed at 90 % gets knocked on the head at 95 % because of some weird and possibly small thing .
I for one find owner occ 95s easy compared to IP 95s
ta
rolf
How about a 94% loan
I have noticed there is quite a difference in LMI fees between a 95% down to 94% loan
same goes with 90% down to 89%
Would this mean that maybe they will also look at it quite differently, like 90% & a 95%
Hia Rolf,
How about an IP 95 with cap LMI under a HDT for a MUH strata titled 3 unit jobbie? On awesome resi rates of course too...
Might need to talk to you in March next year if WBC don't jump up and down with excitement at the refi opportunity from commercial construction to resi.
Mind you an 80% lend might be all I need to get my seed capital back out of the deal but 95% would give me more to play with.
Cheers,
Michael
Good luck with this one ROLF...to be honest i don't think 95% HDT is possible??
never tried it and i dont think i want to go down that path; Regards
Michael
Good luck with this one ROLF...to be honest i don't think 95% HDT is possible??
HDT is hard enough even with full-doc no LMI....I'd hate to imagine 95%
90% with HDT is quite acheiveable. I don't think I'd want to go to 95%, although I'd give it a shot for Michael because he has a cool yacht for his avitar.
I have learnt the reply is
Nothing is impossible
Because almost every time I have made that statement I have been proved WRONG !
SO my answer usually is, 95 % purchase is doable with HDT in some circumstances, refi a lot tougher
ta
rolf
Nothing is impossible
Because almost every time I have made that statement I have been proved WRONG !
SO my answer usually is, 95 % purchase is doable with HDT in some circumstances, refi a lot tougher
ta
rolf
nuh
90 to 95 means 90 to 95 : )
the lmi peg hasnt got much to do with the actual risk.
The 90 % is THE risk peg for many risk models, and this is what the credit scoring is built around.
This is also why many lenders have a premium marked up rate for 90 + lends
ta
rolf
There is a very small difference between the LMI premium for a 94% and 95% lend, as the LMI premium goes up in % as the LVR increases, and as the loan involved increases as well.
For example, you may pay 2% LMI for a 95% LVR loan for $300,000, but for a $950,000 loan @ 95% LVR you'll pay closer to a 4% premium.
For example, you may pay 2% LMI for a 95% LVR loan for $300,000, but for a $950,000 loan @ 95% LVR you'll pay closer to a 4% premium.
