Had a call from my bank today...
- Thread starter VaSSagO
- Start date
Question - if I'm a CPA member but work In a totally unrelated field would I be able to get these deals?
No idea....better ask John that one.
Mine too, could come in handy soon too Aaron.
90 % no lmi to top tier brokers and direct yes, AND huge discount over normal, .......no.
Effectively the policy isnt that much diff from what WBC had a few years back with their 85 no lmi position
Max discount .70, so it doesnt take long to claw back an LMI premium cost.
Those in treasury can correct me, but the amount of extra reserve a lender needs to hold for an insured loan above 80, mixed with 100 pts discount results in a ROI of 0 or negative.
LMI is once off, rate is "forever" .
Obviously such product can be a very suitable option for those in agrowing market, and then simply hop out to a normal lend with normal lending margins and rates
ta
rolf
Effectively the policy isnt that much diff from what WBC had a few years back with their 85 no lmi position
Max discount .70, so it doesnt take long to claw back an LMI premium cost.
Those in treasury can correct me, but the amount of extra reserve a lender needs to hold for an insured loan above 80, mixed with 100 pts discount results in a ROI of 0 or negative.
LMI is once off, rate is "forever" .
Obviously such product can be a very suitable option for those in agrowing market, and then simply hop out to a normal lend with normal lending margins and rates
ta
rolf
I remember last year at a PD day the bank going through how much money has to be put aside for different deals, I believe with CBA it was more to do with the risk rating / category rather then LVR (obviosuly these two are linked though)
It's been generally available for years. My understanding is that it's limited to your PPOR.
I've generally found very few people in these fields actually want or need LMI. Of course there are exceptions, but they tend to be:
a) conservative - they don't 90% loans regardless of the LMI
b) cashed up - they're on reasonably good incomes and thus there's no need to pay LMI
Reading through policy I read
"Loans must be Principal and Interest (not Interest Only) to have LMI waived
The maximum loan amount available is $2 million (per security)
Where there are multiple securities, loan amount must be less than $2 million against each security property to be eligible for the waiver with individual LVR per loan not exceeding 90%.
Once the system assessment has been completed the 'Customer Category' must be '1, 2 or 3' to be considered for LMI waiver"
The P&I with no IO, after the loan has funded I don't believe there would be much in place that would stop the change to IO.
I believe the PPOR maybe a 'credit myth', all the LMI waivers have to done by credit decisioning so would be interesting.
I'll shoot an email off to someone and get back to you with the right answer
IPs no probs, even in trust
ta
rolf
ta
rolf
can't see why not - you are a CPA regardless
You're right Brady, the restriction is around principal & interest, as opposed to only being for PPOR. My bad. I was trying to do one recently but the P&I restriction got in the way (I just tend to associate P&I with PPOR, it's hard to find an investor that wants P&I).
you need to show your certificate of membership so if you can do that you would be eligible.
currently the max discount is 1% which is not too bad for loans above 500K. In the future if you did a loan at 80% or even 90% and negotiated a better package discount you could have that discount applied across all loans in the package.
that is where this offer is different as it offers to different occupations that are not currently available through cba/wbc
loans can be ppor or investment up to 2 million per security and interest only up to 15 years.
Reading through policy I read
"Loans must be Principal and Interest (not Interest Only) to have LMI waived
The maximum loan amount available is $2 million (per security)
Where there are multiple securities, loan amount must be less than $2 million against each security property to be eligible for the waiver with individual LVR per loan not exceeding 90%.
Once the system assessment has been completed the 'Customer Category' must be '1, 2 or 3' to be considered for LMI waiver"
The P&I with no IO, after the loan has funded I don't believe there would be much in place that would stop the change to IO.
I believe the PPOR maybe a 'credit myth', all the LMI waivers have to done by credit decisioning so would be interesting.
I'll shoot an email off to someone and get back to you with the right answer
