RBA May 2015 announcement - 25 point cut

jpcashflow said:
Hi Guys,
I think managing risk is going to be the key to success.

Try keep your LVRS low and also have some spare cash as a buffer :).
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I tend to disagree. As long as your serviceability is good, don't worry about your LVR too much.

I do agree that having a buffer is important though.
 
spludgey said:
I tend to disagree. As long as your serviceability is good, don't worry about your LVR too much.

I do agree that having a buffer is important though.
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LVR will depend on your strategy. LVR is also highly variable. One property I have had a LVR of 105%. Now the same property has an LVR of 66% according to a recent bank valuation. I don't stress too much about LVR. Serviceability and a sensible buffer are more important to me.

Still waiting for AMP to announce.
 
I received AMPs weekly update a few minutes ago. It literally said that they're still deciding. :rolleyes:

Kind of the same response I get when I call them to ask how an application is proceeding.
 
Peter_Tersteeg said:
I received AMPs weekly update a few minutes ago. It literally said that they're still deciding. :rolleyes:

Kind of the same response I get when I call them to ask how an application is proceeding.
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What did you make of the bottom of that email and their servicing Peter? Am i reading it correctly - external debts treated at assessment rate?!

And rental income discounted too (in line with others).

Thats a very big shift in terms of servicing calculator for investors. :eek:
 
Yeah, saw that, not good...

They'll probably have the new servicing calculator out on Monday. I'll have to play with the maths and do some modelling.

Macquarie made some policy tweaks recently too. They're still fairly good, but not as good.
 
Peter_Tersteeg said:
Yeah, saw that, not good...

They'll probably have the new servicing calculator out on Monday. I'll have to play with the maths and do some modelling.
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Has AMP already changed their servicing calculation or will that take effect on Monday? Will it affect applications submitted before Monday?
 
spludgey said:
Any fixed rates coming down yet?
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ME bank just increased them 10bps - they say funding costs have risen.

It may be partly because they're a fair bit cheaper than the rest and can't meet the demand at the moment - their processing times have blown out to 8-14 days!
 
HD_ACE said:
Bankwest lowers .17bps
Tight.
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I'll never trust BankWest. They introduce a cheap product, get a lot of people to sign up for it. Within 2 years they replace it with another cheap product and the cost of the previous product increases. In most cases if you don't switch within 6 months, you're financially behind.

Passing on only 17 points is just another way they're gouging borrowers.
 
Redom said:
ME bank just increased them 10bps - they say funding costs have risen.

It may be partly because they're a fair bit cheaper than the rest and can't meet the demand at the moment - their processing times have blown out to 8-14 days!
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That does not surprise me. They recently dropped their variable to the point where it was competitive, by only passing on 10 points, they've now clawed a fair bit of that back.
 
I had my rate reduced a couple of weeks ago with NAB to 4.34% variable so should come down to 4.14% any time soon. I did this just by calling the overseas call centre and asking for a reduction. They did it instantly while I was on the phone and confirmed the change while I was on line.
As good as that sounds I have been waiting for 7 months to have a IO locked back in after paying P&I for 7 months I am looking to move to another lender. CBA locked my IO loans in in 15 minutes over the phone. ????
 
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