I'm not too sure jerrybee, others with deals in the pipeline with AMP at the moment may be able to advise better.
I got blindsided by Westpac's expat change a couple weeks ago. Application in over the weekend, change announced on Tuesday morning.
Finance risk while growing a large portfolio
- Thread starter Redom
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I'm not too sure jerrybee, others with deals in the pipeline with AMP at the moment may be able to advise better.
I got blindsided by Westpac's expat change a couple weeks ago. Application in over the weekend, change announced on Tuesday morning.
Christ and the new policy applied to the application you submitted before the change? I'm not going to be able to relax all weekend now.
That does tend to be standard practice.
I'm not sure, but you may be OK - mine was for a pre-approval and was passing the date they stated. On the AMP email it states: Credit Policy changes - effective Monday 18 May 2015.
Cheers,
Redom
Oh sweet Jesus let me go sit down and recover from the 17 simultaneous heart attacks I just had. While it's no confirmation it'll help me sleep easier tonight. Thank you!
Alright thanks!!
Where did you get confirmation from, do you have a contact there?
AMp credit themselves....i have 3 deals in the pipeline...and i asked around 4ish this afternoon.
Great thanks. When did this news actually hit, I assume this afternoon?
Reading the post to the end made me realise how conservative I was, some of you on SS have really different risk appetites!
I remember few years back when attending a seminar, I was told by some younger people, Gee, how slowly and hard way I built up my portfolio (Basically since I never drew on equity, just saved up for deposits)?
Well, at least today I can revert to P&I and be save but I like this thread very much as no one has a crystal ball of the changes to come, as governments and others can change rules and regulations as they please!
I remember few years back when attending a seminar, I was told by some younger people, Gee, how slowly and hard way I built up my portfolio (Basically since I never drew on equity, just saved up for deposits)?
Well, at least today I can revert to P&I and be save but I like this thread very much as no one has a crystal ball of the changes to come, as governments and others can change rules and regulations as they please!
Guys my broker is at a conference right now with some AMP people and he's confirmed the new serviceability calcs kick in on the 18th, AND it won't be retroactively applied to applications already in the pipeline. So if you have any clients that want one last bite of this apple now is the time. I'm surprised it's the 18th - do they generally provide such a long warning period?
Other details:
-They are changing the way they count negative gearing
-They still only count half the mortgage if it's shared, but he said they're changing the rent calcs
-He said on the plus side, living expenses are a lot more forgiving now, apparently they used to have one of the most conservative
-They are changing the way they count negative gearing
-They still only count half the mortgage if it's shared, but he said they're changing the rent calcs
-He said on the plus side, living expenses are a lot more forgiving now, apparently they used to have one of the most conservative
AMP have been very friendly of late
Welcome calls etc in the last 2 weeks when lodging deals
with their broker side of the bank with probably the largest slice of any lender coming from "stretched" investors. AMP treasury alone would have concerns, id expect APRA reasoning is a convenient and exit.
AMP are a niche lender, and they do have a great Global Limit product that we use on our financial planning side, but aside from that ..............
ta
rolf
Damn and I'm renovating this place a bit too, was hoping to do an LMI cashout to 90% after 6 months since last val. I guess that's off the cards now and I'll have to count my LMI paid already as a one-off cost.
With all these policy & APRA changes, it looks like the party is over for us LMI investors and we are forced into moving to < 80% purchases in the long run. In 4 years when we have to renew our I/O periods, will have to refi to another lender and lose that LMI paid already anyway, since servicing with our existing lenders may be affected..
Well it was fun while it lasted, alot of us already pushed the limit past our expectations
On another note - this probably puts an end to the "order of lenders" loan structure planning that most are doing in their portfolio expansion. The order of lenders will probably be turned upside down after the policy changes or at least inside-out or flattened alot.
and ANZ are now relaxing their policy, in theory...
Improvements to Loan Change Requests!
Aspart of our ongoing commitment to simplifying our processes, we are pleased to announce that from 11th of May, via the loan change request process you can now:
? Changea Home loan to a Residential investment loan and vice versa
? IOExtensions?Loans with LMI?On a loan with LMI you can now submit a loan change request for interest only extensions, where the LVR does not exceed the maximum threshold for the property type(e.g. less than 80% for Residential Standard). This change canonly be submitted via the loan change request form.
Note:If an LMI policy is present, the policy will be cancelled. Additional lending above the LVR threshold will require a new LMI policy and premium.
Improvements to Loan Change Requests!
Aspart of our ongoing commitment to simplifying our processes, we are pleased to announce that from 11th of May, via the loan change request process you can now:
? Changea Home loan to a Residential investment loan and vice versa
? IOExtensions?Loans with LMI?On a loan with LMI you can now submit a loan change request for interest only extensions, where the LVR does not exceed the maximum threshold for the property type(e.g. less than 80% for Residential Standard). This change canonly be submitted via the loan change request form.
Note:If an LMI policy is present, the policy will be cancelled. Additional lending above the LVR threshold will require a new LMI policy and premium.
Maybe you could quickly squeeze it in, as I said the new policy isn't due to kick in until the 18th. Even if your renovation hasn't finished yet the value has probably still gone up.
But I thought there was a crackdown on this saying that brokers need to delve into living expenses on a personal level and using things such as the HPI were now being strongly discouraged?
No idea I'm simply relaying on what he told me
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