Nope all separate I made sure of that.
Changes / tightening on servicing for investors
- Thread starter Marty McDonald
- Start date
Nope all separate I made sure of that.
The RBA is working with other regulators (ASIC, APRA) to minimize the bubble risks in Sydney, because they want to cut rates further as they try to engineer the transition from mining to non-mining investment and consumption.
'engineer' suggests technical know how, forethought and creation. The reality is, 'oh god we've lost power, what do we do now?', 'keep slashing rates mate, that might fire things up'. 'what about Sydney tho it's a firecracker ready to pop', 'dunno, you hold the wheel and I'll go have a chat to Nige and see if he can cool that engine a bit'
Mate the last time these policy kicked in was in 2004 and prior to that it was 1991 and in 1984 or something ( i got these data and dates from my mentor) the 2004 one lasted 18 month the 1991 lasted 5-6 years and the 1984 one didnt last long as rated dropped dramatically + it was during the time Negative gearing was abolished.
- Higher rate for IP etc....
last till oct....umm i dont think so more likes X years....
I've just been hit by new policy.
Early last week I ordered desktop Val's on two western Sydney properties to top up loans with AMP. Gave go ahead for broker to proceed with one top up and to order a full Val for the other. Neither applications were filed.
This week we no longer service for the full ampunt. Top up was for 150k across the properties. Our portfolio is cash flow positive and that positive cash flow (factoring 80pc of rental income) covers our PPR mortgage. Hubby on higher than average income.
So yes, it can affect multiple property investors right now with plenty of equity and good incomes.
Early last week I ordered desktop Val's on two western Sydney properties to top up loans with AMP. Gave go ahead for broker to proceed with one top up and to order a full Val for the other. Neither applications were filed.
This week we no longer service for the full ampunt. Top up was for 150k across the properties. Our portfolio is cash flow positive and that positive cash flow (factoring 80pc of rental income) covers our PPR mortgage. Hubby on higher than average income.
So yes, it can affect multiple property investors right now with plenty of equity and good incomes.
The umpire has changed the game and it's conditions..big time.
Time to take off the moulded sole footy boots and put in the screw in boots as we are about to start playing on a slippery playing field with regards to the investment lending environment..
Like all others I will be hit hard with the new lending policies having started late in life on my investment journey and have just finalised on my second IP this week.
Like many I will review my short term goals and what I need to do to move forward on my investment journey..well hopefully forward!!!
Coota
Time to take off the moulded sole footy boots and put in the screw in boots as we are about to start playing on a slippery playing field with regards to the investment lending environment..
Like all others I will be hit hard with the new lending policies having started late in life on my investment journey and have just finalised on my second IP this week.
Like many I will review my short term goals and what I need to do to move forward on my investment journey..well hopefully forward!!!
Coota
and those who are still negatively geared despite this period of low rates, have bought dud investments. time for them to face the risks of their follies.
Heh, was thinking the same thing!
living off equity would probably go out of fashion for a bit.
http://petewargent.blogspot.com.au/2015/05/macro-prudential-and-sydney-property.html?m=1
Great blog post this morning to help put the recent lending changes into context. Sydney fundamentals still strong!
Great blog post this morning to help put the recent lending changes into context. Sydney fundamentals still strong!
They haven't been popular for a quite a while (way before the recent changes).
There's a few lenders that will still do 95% incl of LMI which is basically a 92% lend with LMI added on top.
However - there's often certain criteria that needs to be met (you may have to demonstrate that you hold a certain amount of equity in other property for instance). These deals are often credit scored quite harshly too.
I don't see a lot of 95% IP loans these days. I don't like submitting them either!
Cheers
Jamie
You need to talk to your broker about firstmac. They are still doing actuals and neg gearing.
ALL the banks will be just about same same, give or take a smidge. They will all be assessing all debt at 7% or thereabouts. The non banks will be the best bet now for borrowing capacity... They continue to use neg gearing and actuals on OFI debt so they are streets ahead .
No changes planned. I have checked and triple checked. That can change of course, but for now- make hay while the sun shines.
Assessment rate of 8%. 80% of rent accepted, neg gearing accepted, actuals on OFI accepted. 4.19% variable. $295 annual fee. 10 sub accounts available, each with offset ( if you ask) And for those worried about I/O periods expiring, 10 years I/O available. And of course, 80% of the NRAS credit accepted as untaxed income if you move your PPOR to them.
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