The banks don't need to touch that policy, they let the valuers do it for them via conservative valuations.
Changes / tightening on servicing for investors
- Thread starter Marty McDonald
- Start date
The banks don't need to touch that policy, they let the valuers do it for them via conservative valuations.
Thanks!
It still sounds like its better to take the aggressive strategy risk and go to 90% (if possible!) straight off (keeps money in pocket), reno using the saved funds, then either extract equity if still possible, or wait for life to change and CG and extract to 80%. Keep IO of course...
Limited up front val ( not impossible...but they do ask a lot of questions + charge the client so it's not free)
They allow you to nominate your preferred valuer though, as long as the valuer is on their panel. Their panel is pretty comprehensive, so this can be mighty handy
But the original post was about servicing constraints and how to push past them using some lateral thinking... that's where the adelaide/firstmac/nras combo comes into it's own, provided there is really good equity to work with.
They allow you to nominate your preferred valuer though, as long as the valuer is on their panel. Their panel is pretty comprehensive, so this can be mighty handy
But the original post was about servicing constraints and how to push past them using some lateral thinking... that's where the adelaide/firstmac/nras combo comes into it's own, provided there is really good equity to work with.
Yep pretty much nailed it.
This is why a CG strategy is much more important than yield play. There are heaps of ways to increase your income but not capital.
From a finance equity perspective You are already in negative CG if you have done your loan at a 95% LVR and can only top up to 80%. You would need to wait a while before being able to use the bank's money and leverage.
You can increase your income by capital gain. You can sell shares to realize capital gain for income. I have sold properties that have had CG , but low yields for income, plan on selling one every 3 or 4 years, and still maintain the same value of net assets and LOC. I will run out of years before I run out of property. Capital gain can be realized to purchase higher yielding assets to increase your income.
windyzz, Peter - is it only certain banks that have that policy or will all revalue OTP at current market value after 12 months of signing the contract on settlement?
Reason I ask is that I am about to settle on an OTP apartment in Brisbane that we signed the contract on just over 12 months ago and am in the process of arranging finance.
There's a few. Off the top of my head - ANZ and Macquarie will. There are others but I can't remember who.
Cheers
Jamie
Same, I signed my contract in January 2014, and will be completed in about 8-10 months time. I heard CBA has the policy too. But not NAB.... Not too sure. Just hope this policy remains in 12 months time.
I could be wrong, but I'd be surprised if this changed as a result of APRA intervention - doesn't seem to align with specific risks identified.
Sorry for the simple question... but what is NRAS?
Add nab into the mix.
No discounts on investment loans (above the published discounted rates) and mooted changes to their serving model.
No discounts on investment loans (above the published discounted rates) and mooted changes to their serving model.
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This flux too will pass..................
ta
rolf
ta
rolf
and now cba follow nabs lead on pricing for investment loans.
Mm
So what does that mean for a standard variable rate now ?
Just as I was about to go on a spending trip
Cliff
Mm
So what does that mean for a standard variable rate now ?
Just as I was about to go on a spending trip
Cliff
arranging the deck chairs on the Titanic
wont have any real bottom line effect.
What much of this hints at is that APRA will increase the capital reserve to be hold for IP backed loans..........................
ta
rolf
spot on as usual, my thinking too. Increase capital reserve ratios against investor loans means not as profitable
Mm
So what does that mean for a standard variable rate now ?
Just as I was about to go on a spending trip
Cliff
Still lending! Just not discounting as much
talked to my lending manager and he confirmed the same. was in a hurry during lunch break so didn't get a chance to check with him on details, do you guys know what will happen to:
1. fixed rate? can investors still get nab's advertised fixed rate below?
http://www.nab.com.au/personal/interest-rates-fees-and-charges/interest-rates-for-home-lending
2. borrowing power and final approval? will the increased loan cost lower my borrowing power? by how much? will they knock me back and refuse my loan (AIP is in place)?
3. Interest Only option? are they going to change their I/O related policies?
It is still very early stage, but I guess many of us are going to be interested in answers to the above questions, will really appreciate if can keep us updated. Thanks!
1. fixed rate? can investors still get nab's advertised fixed rate below?
http://www.nab.com.au/personal/interest-rates-fees-and-charges/interest-rates-for-home-lending
2. borrowing power and final approval? will the increased loan cost lower my borrowing power? by how much? will they knock me back and refuse my loan (AIP is in place)?
3. Interest Only option? are they going to change their I/O related policies?
It is still very early stage, but I guess many of us are going to be interested in answers to the above questions, will really appreciate if can keep us updated. Thanks!
arranging the deck chairs on the Titanic
wont have any real bottom line effect.
What much of this hints at is that APRA will increase the capital reserve to be hold for IP backed loans..........................
ta
rolf
Just looking at doubling the number of deck chairs on the titanic .
That's not an iceberg , that's opportunity
Cliff
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