not a great loss for most Im sure
ta
rolf
ta
rolf
Heretic bank now max 80 % lvr on Ips as well
- Thread starter Rolf Latham
- Start date
I thought they stopped lending money to pretty much anyone, years ago!
Just kidding. As you say, no great loss.
Just kidding. As you say, no great loss.
Bankwest today as well
http://news.domain.com.au/domain/re...th-5-deposit-think-again-20150520-gh5pfp.html
http://news.domain.com.au/domain/re...th-5-deposit-think-again-20150520-gh5pfp.html
Yep - BWA made the announcement the other day.
Two of the worst lenders to use for IPs so not overly concerned at the moment.
Cheers
Jamie
I agree Jamie!
My NAB BDM said they are looking at possibly reducing to 80% LVR for investors too. Definitely 90%, maybe 80%.
It's crazy.
If that's the case - what are they going to offer to attract business? Servicing will be rubbish - LVR offering will be rubbish....they're not going to be able to differentiate themselves from the rest when it comes to the investor market.
Cheers
Jamie
The people that will really hurt from that kind of policy are their current IP borrowers who have high LVR's. They'll be stuck with no option to get cash out, and no option to leave without paying LMI again.
This will affect more borrowers than BW or Heritage - IF it happens. At 90%, it's not such a bad thing but 80% is a whole different story.Quite possibly, they already know ALL the banks will be doing this.
Had lunch with CBA the other day, they're keeping LVRs as usual (from what he advised) as they think people will pay higher interest rates to get higher LVRs.
Think about it and the higher interest, the revenue in the LMI premiums and locked in client creates good business revenue for everyone.
But you get banks and they go on swings and roundabouts - the push for the stability in 75% lends from NAB, or sub 80%, then sub 80% and $500k... now you can say stability in 80+ lends by dictating client type thru policy who this fits... to comply with legislation of course.
Will be interesting to see the impact on rents if investments get charged a higher rate vs an 'old' investment on a lower rate.
Think about it and the higher interest, the revenue in the LMI premiums and locked in client creates good business revenue for everyone.
But you get banks and they go on swings and roundabouts - the push for the stability in 75% lends from NAB, or sub 80%, then sub 80% and $500k... now you can say stability in 80+ lends by dictating client type thru policy who this fits... to comply with legislation of course.
Will be interesting to see the impact on rents if investments get charged a higher rate vs an 'old' investment on a lower rate.
