Just thought I'd share a recent conversation I had with an ANZ LMI assessor yesterday. It was a major shock, no wonder their turnaruond times are 2 weeks.
I work for a major builder in Melbourne, most of my clients are first home buyers, and almost all are building because they dont have the deposit to cover stamp duty etc for an established home. Anyway, I had a single applicant, a registered nurse, no liabilities, in the industry for 5 years, same job for 9 months, 95% lend, qualifier had a surplus with the ANZ's sensitised rate. I did not expect a decline. The assessor said there had been no change in policy, just that now LMI would make more use of their discretion in assessing risk. As there was no genuine savings (banks used to insist on seeing genuine savings for FHB's up until about 2 years ago), the client had no existing relationship with ANZ, and 'no credit history' (becuase she didnt have a personal/car loan or credit card) and although the loan serviced, the assessor would like at least $100pm per $100k borrowed as surplus. I was gobsmacked. I think I will be refering to pre-13th November, when I did lots of business, and post 13th November when it got harder.
This is going to be really painful, FHOG is up, rates are down, so I was getting a lot more enquiry from first home buyers, but if LMI are going to tighten credit like this, it wont be until the governments FHB savings plans start to come through in 4 years till I have any business again.....
I work for a major builder in Melbourne, most of my clients are first home buyers, and almost all are building because they dont have the deposit to cover stamp duty etc for an established home. Anyway, I had a single applicant, a registered nurse, no liabilities, in the industry for 5 years, same job for 9 months, 95% lend, qualifier had a surplus with the ANZ's sensitised rate. I did not expect a decline. The assessor said there had been no change in policy, just that now LMI would make more use of their discretion in assessing risk. As there was no genuine savings (banks used to insist on seeing genuine savings for FHB's up until about 2 years ago), the client had no existing relationship with ANZ, and 'no credit history' (becuase she didnt have a personal/car loan or credit card) and although the loan serviced, the assessor would like at least $100pm per $100k borrowed as surplus. I was gobsmacked. I think I will be refering to pre-13th November, when I did lots of business, and post 13th November when it got harder.
This is going to be really painful, FHOG is up, rates are down, so I was getting a lot more enquiry from first home buyers, but if LMI are going to tighten credit like this, it wont be until the governments FHB savings plans start to come through in 4 years till I have any business again.....