Bank finance loosening?

This is a cross post from my development thread that might get more visibility here to stimulate discussion.

I got a call today from someone at a bank saying they saw our for sale sign and asking did we want to talk to someone about finance for the development or any other developments we may have planned. Hmm, when I was looking around for finance a year ago, banks were pretty tight with finance and it took ages to get our loan over the line. Now we've had an interest rate cut and banks are chasing customers!

Is this a sign that bank are starting to want to lend again?
 
From a conversation I had with a CBA personal banker I get the impression that guidelines for lo doc lending may have changed from 1 October...more flexibility in their previous max lvr of 60% requirement (without BAS statements). Not much detail given though.
 
This is a cross post from my development thread that might get more visibility here to stimulate discussion.

I got a call today from someone at a bank saying they saw our for sale sign and asking did we want to talk to someone about finance for the development or any other developments we may have planned. Hmm, when I was looking around for finance a year ago, banks were pretty tight with finance and it took ages to get our loan over the line. Now we've had an interest rate cut and banks are chasing customers!

Is this a sign that bank are starting to want to lend again?

Just remember there's 2 department you need to look at..1. The front line staff ( sales, branch, lending manager) 2. the credit team.


The front line staff will always push for a sales and a "chance" at getting the business/ commission. :p

If the bank approves or not depends on the credit team; and they don't get paid a commission...so it will still come down to the merit of your deal.;)

Regards
Michael
 
Correct me if I'm wrong, but cold calling for business from a finance company would be illegal?

Uccc, nccp and all that?

Do these codes apply to commercial loans? I now we had to sign some waivers in this regard that our loan for non-residential investment purposes, or something like that.
 
Do these codes apply to commercial loans? I now we had to sign some waivers in this regard that our loan for non-residential investment purposes, or something like that.

No they specifically exclude commercial loans. Which is why some non-conforming lenders will only lend to companies/trusts to avoid NCCP.
 
Just remember there's 2 department you need to look at..1. The front line staff ( sales, branch, lending manager) 2. the credit team.


The front line staff will always push for a sales and a "chance" at getting the business/ commission. :p

If the bank approves or not depends on the credit team; and they don't get paid a commission...so it will still come down to the merit of your deal.;)

Regards
Michael

Yes, I figured as such. To the sales staff, if there's even a 5% chance, it's well worth a 2 minute phone call to chase up.

I perhaps should have put a smiley in my original post. I realise it is dangerous to draw conclusions from a sample set of one. Was just chasing some more anecdotal evidence from others.
 
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