Changes / tightening on servicing for investors

[Jess Peletier]

1) - Does that include variable also? NAB will only give advertised rate and no further discount? Does this include existing customers?
3) - When 5 yrs interest only is up, what's the likely hood of getting another 5?

1) Yes
3) With NAB it's a full application to extend IO, so will depend on what your circumstances look like then. This is nothing new though. Nothing concrete in terms of IO policy changes have been announced.

 

[mugen]

1) Yes
3) With NAB it's a full application to extend IO, so will depend on what your circumstances look like then. This is nothing new though. Nothing concrete in terms of IO policy changes have been announced.

Is NAB the only bank that requires full application?

Would this mean when the time comes to extension, I could be losing my current discount of 1.3% off the SVR?

 

[INVSTOR]

1) Yes
3) With NAB it's a full application to extend IO, so will depend on what your circumstances look like then. This is nothing new though. Nothing concrete in terms of IO policy changes have been announced.

Thanks Jess! Much faster response than waiting for a response to Monday's email after the branch wasn't answering their phones.

 

[Shahin_Afarin]

Update on Westpac:

1. Increased living expense calculation = decreased borrowing capacity

2. No longer allow for negative gearing benefits = decreased borrowing capacity

 

[sandyfeet]

This thread is going to be an interesting read as this all unfolds.

As somebody starting out and still learning everyday, it is going to be interesting to see how peoples strategy develops and changes at this point in time,

As Rolf says - 'this too will pass'

 

[sandyfeet]

Update on Westpac:

1. Increased living expense calculation = decreased borrowing capacity

2. No longer allow for negative gearing benefits = decreased borrowing capacity

Is this for investors, owner occs, or both?

 

[mugen]

Number 2 obviously was never accounted for PPOR loans.

 

[sandyfeet]

ok, so when a bank assesses negative gearing for a loan application it is only in regards to the future IP loan and not for previous loans that may have negative gearing benefits?

 

[Jamie M]

ok, so when a bank assesses negative gearing for a loan application it is only in regards to the future IP loan and not for previous loans that may have negative gearing benefits?

It depends on the bank. Generally banks that allow for negative gearing in borrowing capacity calculations take into account all investment loans.

Cheers

Jamie

 

[sandyfeet]

It depends on the bank. Generally banks that allow for negative gearing in borrowing capacity calculations take into account all investment loans.

Cheers

Jamie

Thanks Jamie, I thought that might have been the case

 

[Watson1]

I wonder if STG will follow and when NAB are going to pull the plug on assessing OFI debt at actual.

 

[christos]

In the mainstream media now

http://www.smh.com.au/business/bank...akes-on-investor-lending-20150521-gh6imi.html

 

[Jamie M]

I wonder if STG will follow and when NAB are going to pull the plug on assessing OFI debt at actual.

Really good questions.

I think STG will introduce no discounts on IP loans soon.

I also think it's only a matter of time before NAB changes it's servicing calc.

Both will prob be announced within the next couple of weeks.

I haven't heard anything specifically.

Cheers

Jamie

 

[Watson1]

STG will be following Westpac changes...

 

[remingbi]

If nab were to do this, is there any benefit of refinancing out of them now to use them later?

 

[Jess Peletier]

If nab were to do this, is there any benefit of refinancing out of them now to use them later?

No, but if you want to access equity, do it now.

 

[Beanie Girl]

No, but if you want to access equity, do it now.

Makes me feel like drawing out every dime of the equity in the PPOR and throwing it in the offset account now!
NO Bank! You can't take take away my access to my equity, leggo, AAARGGHH

 

[GreyGhost]

May be old news already, but I heard through a contact at NAB they are stepping away from SMSF lending.
Truth or speculation, I don't know...

 

[Shahin_Afarin]

May be old news already, but I heard through a contact at NAB they are stepping away from SMSF lending.
Truth or speculation, I don't know...

The ships already sailed on that and in reality they weren't competitive anyway in that space.

 

[Jess Peletier]

Makes me feel like drawing out every dime of the equity in the PPOR and throwing it in the offset account now!
NO Bank! You can't take take away my access to my equity, leggo, AAARGGHH

Hahaha!

You should, or that's seriously what it will be like I can already see it - people sobbing hysterically, pleading in desperation over the phone to their AMP CSO at the cruel twist of fate that ensured they can no longer get equity and also can't move without paying LMI again. Nightmarish