On a more constructive note anyone come up with any non banks with decent servicing besides Firstmac and ABL funded mortgage managers?
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Odds are, they can't even qualify for the loans they've got, let alone to purchase any more properties.
On a more constructive note anyone come up with any non banks with decent servicing besides Firstmac and ABL funded mortgage managers?
On a more constructive note anyone come up with any non banks with decent servicing besides Firstmac and ABL funded mortgage managers?
Attended a function this today and spoke with about 15 different lenders. There are still lenders that will take actual repayments and have very strong servicing models. A few are even outside of APRAs oversight (that's what they tell me).
The catch is of course, the price you'll pay via higher rates and fees.
Ah, so this is what shadow banking is. I always thought it was a nice way to refer to loan sharks. So basically it's the smaller lenders?
Ok question - other than the higher rates and fees, are they as inherently safe as the larger banks? Would one have to worry about predatory behavior? Do you need to proceed with extreme caution or are they pretty much as safe as the big guys?
On a more constructive note anyone come up with any non banks with decent servicing besides Firstmac and ABL funded mortgage managers?
Haha well in policymaking terms we used the term to mean banks that aren't under the same oversight levels as the main banks that are prudentially regulated.
Loan sharks do fall into that bucket.
In terms of higher rates, it should be noted the rates are still very much residential rates. Given the size of the lenders these residential rates aren't too shabby and can compete with the bigger players.
The one that i've used so far has a variable rate starting at <4.25%. The difference is that valuations have fees paid by client, so the upfront cost is a bit more - but the rate is sharp.
Cheers,
Redom
Here is a question....I know Westpac have changed criteria...but have St George changed yet...they are owned by WBC but are a separate business entity....
Just announced they are adding 2.25% buffer to their assessment of OFI debt.
They haven't removed neg gearing though, which WBC did
Do they have predatory practices
In Australia the shadow sector has typically been very small as a portion of the lending market. It has been as they've only been able to get business with to niches that the major players wouldn't fill. Now with these serviceability tightening on investors, they have a much bigger 'niche' to fill.
For those that it affects most, i think their the least price responsive (sophisticated investors with large mortgage holdings) and may be willing to be a bit more in fees to get deals over the line.
JohnHenry the BankWest change occurred and was discussed on this threat weeks ago.
Most lenders have adjusted their LVR policy, but most are still allowing you to borrow up to 90% of the property value. Unless you were relying on BankWest for finance (it's hard to think of why you'd do that), the LVR change haven't been worth worrying about so far.