Changes / tightening on servicing for investors

Thanks guys.

So who do we have left at 90 LVR + LMI? I'm guessing some smaller solutions looking for market share at perhaps slightly higher rates?

The Rock are still doing 95% + LMI capatalised to 97%.
Might get more business now with first time investors keen to get a foot in the door but have little savings now that Bankwest are done.
 
Just got word that they will reduce LVR's on IP loans - but it will be higher than 80%

Changes coming within next couple of weeks

Cheers

Jamie

Yeah - it seems to depend who you speak to. I've heard "def 90%, maybe 80%" and "def 80%" so I'm taking a 'prepare for the worst but hope for the best' stance on this one. :)
 
80% is good. Take some heat out of the market. Also means some of these OTPs don't get sold as easily, so less supply flooding the market from developers cutting corners.
 
80% is good. Take some heat out of the market. Also means some of these OTPs don't get sold as easily, so less supply flooding the market from developers cutting corners.

How so? Aren't most of the OTP getting picked up by o/seas buyers?

Contracts are signed on OTP before valuations for finance are even completed.
 
I heard the blue boys were looking at doing something similar to BW reducing investment loans to 80%.

I think the most shocking change was westpac removing negative gearing!
 
Great. NG is for people who want to lose money and believe in the Cap Gain Unicorn. At these low rates, if you're still NG you bought a dud property.

My properties are all positively geared but when the repayments are added to servicing calculators at P & I at a loaded rate some are "negatively geared". So a double whammy hit when NG no longer used in a calculator.
 
Great. NG is for people who want to lose money and believe in the Cap Gain Unicorn. At these low rates, if you're still NG you bought a dud property.

How ? Most New Investor will be borrowing 90-95%, and if they're buying in Sydney around 10km from CBD for a 2 bed unit, the yield will be around 4.3-4.5%. With Strata, water, council, insurance, property manager, etc. It will be negatively cash flow. Unless you have more than 20% deposit, then it will be neutral to positive.

It doesn't mean they're a dud.
 
Another 600K loan @ at 4.36%.
Through broker.
New one is 4.44% ��
It is a land & construction loan if that makes any difference.

Umm...

4.44% is standard pricing at NAB Broker for aggregate borrowing over $750k.

It's a reasonably good deal, about the best you can expect from a major lender at this point, but it's not a negotiated discount. It's available to anyone in the same circumstances.
 
Like I said, not a bad deal.

I think we'll be seeing more and more investors in the future come to understand why the brokers are always saying, "Rate isn't the most important thing."
 
hi guys, someone told me that private banking clients are still able to get loans above 80% for investments and these new APRA rules either arent as strictly applied or not at all, is this true?
 
hi guys, someone told me that private banking clients are still able to get loans above 80% for investments and these new APRA rules either arent as strictly applied or not at all, is this true?

only 3 banks has stopped lending over 80%....there's still like 55+ banks still doing lending in the 90-95% IP space...

With Private banking, that is true to a point...as private bankers and business bankers can do the deal under their Commerial books at resi rates.

APRA rules is targeting the resi books only.
 
Back
Top