Are credit conditions easing?

[Intrinsic_Value]

Bankwest introduces 97% loans

Shadow its not just the available LVR that is important, but also the credit procedure, ie how is it to obtain the loan.

I met with someone the otherday at CBA who is reasonably high up and he told me that whilst they might be marketing such products, the pool of eligable borrowers is very very small.

The banks have tighted up their risk criteria significantly.

So there is not much point basing the sustainability of the property market on 97% LVR loans if very few people can obtain the loans.

 

[tom32]

Bankwest introduces 97% loans

I heard Troy Buswell this morning on ABC radio Perth, and he indicated the loans would only be available on new homes? Nothing in the article about that?

Does anyone know for certain?

 

[tgarthe]

One for the brokers...Are 90% loans available for expats at the moment like a few 'expat mortgage broker' websites are spruiking??

Cheers

 

[Peter_Tersteeg]

One for the brokers...Are 90% loans available for expats at the moment like a few 'expat mortgage broker' websites are spruiking??

There aren't many options available, and it can depend on the country and currency where the expat is working, but yes, 90% loans are available.

 

[ali]

xcept try and get IO variable on PPOR and offset..................ouch that can be an expensive lesson as one of our clients found recently.

Sometimes the detail cost a lot more than the apparent ease or saving.

ta
rolf

Ah well, for a straight forward IP IO loan it has been all good. If it becomes a headache later I can always move on.

BTW, my bank manager said today credit seems to be tightening - not easing - and valuations are coming in really conservatively.
Cheers Ali

 

[Belbo]

There aren't many options available, and it can depend on the country and currency where the expat is working, but yes, 90% loans are available.

I grew up in WA but live in NSW. Can I qualify as an expat???

 

[Ms Jade]

I heard Troy Buswell this morning on ABC radio Perth, and he indicated the loans would only be available on new homes?

Have they done a deal with the Gov't where the latter underwrites some of the risk or something??

High LVR = high risk
Max LVR = max risk
FHB = No equity behind them nor history of being able to meet payments
New homes = new estates where greater possibility of overpaying for builders' margin + lack of scarcity + now more likely to be filled with other FHBs.
What am I missing that makes this a brilliant business idea?

 

[Mick C]

One for the brokers...Are 90% loans available for expats at the moment like a few 'expat mortgage broker' websites are spruiking??

Cheers

Only place you can get a +90% Ex-pat loan is with ANZ ( must be existing credit client... credit card or home loans etc) or Quantas Credit union....there are a few more banks i can add to the list but those 2 are def the easiest to deal with at the 90% mark.

Both bank has the following conditions:
1. Works for an approved company
2. Not self employed
3. Worked for 1 years +
4. NOT a perm ex-pat ie...have a reason to come back to Aus in 3,5,10 years time? -- ie your family living in Aus for example.


Regards
Michael

 

[Rolf Latham]

We are doing a 90% er with the Dragon at the mo

Painful, but doable

t
arolf

 

[Mick C]

We are doing a 90% er with the Dragon at the mo

Painful, but doable

t
arolf

Yep, don't like the Dragon's service and approach as well --- that's why IF i don't need to play with the Dragon 's fire i wont...

 

[Spectre]

Define easing. Are you're a 'risky' borrower or a 'vanilla' borrower
You go back at GFC and the banks tightened up
Now they tighten due to NCCP

If tighten is actually the correct term - blend it with different legal interpretation

More often we see deals fall over due to valuations especially with home renovations on a large scale basis

 

[Shadow]

Home loan war starts

September 12, 2011

A FRESH round is likely to begin in the mortgage price war with Commonwealth Bank pledging to beat any advertised rate among its three big rivals.

The pledge has hallmarks of the ''unbeatable'' campaign launched by National Australia Bank in New Zealand, a move that spurred on home lending but crunched margins among banks.

. . .

The move is expected to draw a swift response from rivals National Australia Bank, ANZ and Westpac.

More here... Home Loan War Starts

 

[HomePage]

I've been waiting two weeks to get approval for a low LVR loan on the basis of a very favourable financial situation (stable, well paying job, neglible other liabilities, great credit history and enough cash flow to service a loan twice the size even at 10% interest rate) and the bank is being very cautious in their approach. I'd hate to be hocked up to the eyeball and trying to add another IP to my stash in these current scrutinous loan approval conditions.

 

[tom32]

Re: beat any advertised rate @ shadow

Trouble is the advertised rates of all the four big banks are already at least 0.5% higher than what you get walking off the street to get a mortgage unless you are trying to borrow 80k.

 

[tom32]

I've been waiting two weeks to get approval for a low LVR loan on the basis of a very favourable financial situation (stable, well paying job, neglible other liabilities, great credit history and enough cash flow to service a loan twice the size even at 10% interest rate) and the bank is being very cautious in their approach. I'd hate to be hocked up to the eyeball and trying to add another IP to my stash in these current scrutinous loan approval conditions.

If you don't mind telling; how have you got this feeling of caution off them?

In my recent experience with combank I sat there with a loans person over about two hours with the missus till she filled out a database program on the computer fully then pressed a button waited about a minute to be told OK you are considered by the bank a good borrower.

There was no opportunity for any subjective assessment of me. It appeared that I could have cruised in with a hyperdermic syringe hanging out of one arm and a parrot on the other shoulder and it appears it makes no difference in that her opinion of me made no difference?

When you say bank, is it a second teir bank?

 

[HomePage]

If you don't mind telling; how have you got this feeling of caution off them?

In my recent experience with combank I sat there with a loans person over about two hours with the missus till she filled out a database program on the computer fully then pressed a button waited about a minute to be told OK you are considered by the bank a good borrower.

There was no opportunity for any subjective assessment of me. It appeared that I could have cruised in with a hyperdermic syringe hanging out of one arm and a parrot on the other shoulder and it appears it makes no difference in that her opinion of me made no difference?

When you say bank, is it a second teir bank?

The feeling of caution comes from how long it is taking, for me having to explain basic things to loan approval officers like how salary sacrificing works and for their regular requests for me to provide more evidence to support assets that I hold that are so small that they would not make any difference towards my ability to repay the loan. Oh, and the bank is NAB.

In any case, my post must have subliminally nudged them along as I was just advised my loan has been approved. All is now good!

 

[Spectre]

i had a credit manager for Suncorp ask me for the last two years tax returns for the MLC Investment Trust for one of my clients who had managed funds... He was convinced it was a discretionary family trust not a financial services organisation. So I just got on the phone and ring the head of MLC...

 

[Aaron_C]

i had a credit manager for Suncorp ask me for the last two years tax returns for the MLC Investment Trust for one of my clients who had managed funds... He was convinced it was a discretionary family trust not a financial services organisation. So I just got on the phone and ring the head of MLC...

Suncorp are just muppets. End of story.

 

[Marty McDonald]

The feeling of caution comes from how long it is taking, for me having to explain basic things to loan approval officers like how salary sacrificing works and for their regular requests for me to provide more evidence to support assets that I hold that are so small that they would not make any difference towards my ability to repay the loan. Oh, and the bank is NAB.

In any case, my post must have subliminally nudged them along as I was just advised my loan has been approved. All is now good!

Congrats on the approval. For mine I would say in your case as you are salary sacrificing to super? You are possibly in your 50's and NAB wanted to see your full asset position that way making reasonable attempts to verifying you had an exit stratergy for the loan once you stop work. Sounds like the new nccp regulations at play to me. Lenders are still very nervous about "older" borrowers and the new legislation. They would never be so rude as to bring this up though! For "younger" borrowers it's definately loosening from my observations.

 

[Ms Jade]

I've been thinking that one of the main risks to the market right now is global credit restricting again. If Oz banks are easing up on rates & loans, perhaps they see no problems rolling over their o/s debt.