There's an increase in banks doing some subtle "tinkering at the edges" over recent weeks - no doubt these are the results of various "chats" with APRA behind closed doors.
Some examples;
Macquarie incentivising P & I over I/O in both their rates and on their servicing calc.
Westpac lifting its assessment rate from 6.8% to 7.1% and placing a floor under it, meaning it will remain 7.1% even if rate to borrower reaches 1%
But perhaps the biggest change, receiving the least attention, is the adjustment in non resident lending from the Westpac family - Westpac, STG, BSA, BOM and Rams - reducing non resident lending LVR's from 80% to 70%.
I dont know what the stats are, but I'm pretty sure the Westpac family does the majority of non resident lending in Australia... certainly the overwhelming lenders of choice amongst the heavyweight Connective, FAST, AFG type groups who write a lot of those kinds of deals.
This coupled with the significant increase in Govt chatter about getting tough on illegal non resident purchases, the $5K FIRB fee and strengthening ( or supposed strengthening ) of FIRB's capacity to enforce things and the $39 million high profile sacrificial lamb /imposed sale in Sydney recently... etc etc.
Whether any of this will make any difference to the Sydney insanity is up for debate... after all.... money is very very very very ( did I say very?) cheap now and Mortgage Ezy just joined the sub 4% 3 year brigade....
I wonder how long before all the majors are offering 3 years at 4% or below 4% ?
Some examples;
Macquarie incentivising P & I over I/O in both their rates and on their servicing calc.
Westpac lifting its assessment rate from 6.8% to 7.1% and placing a floor under it, meaning it will remain 7.1% even if rate to borrower reaches 1%
But perhaps the biggest change, receiving the least attention, is the adjustment in non resident lending from the Westpac family - Westpac, STG, BSA, BOM and Rams - reducing non resident lending LVR's from 80% to 70%.
I dont know what the stats are, but I'm pretty sure the Westpac family does the majority of non resident lending in Australia... certainly the overwhelming lenders of choice amongst the heavyweight Connective, FAST, AFG type groups who write a lot of those kinds of deals.
This coupled with the significant increase in Govt chatter about getting tough on illegal non resident purchases, the $5K FIRB fee and strengthening ( or supposed strengthening ) of FIRB's capacity to enforce things and the $39 million high profile sacrificial lamb /imposed sale in Sydney recently... etc etc.
Whether any of this will make any difference to the Sydney insanity is up for debate... after all.... money is very very very very ( did I say very?) cheap now and Mortgage Ezy just joined the sub 4% 3 year brigade....
I wonder how long before all the majors are offering 3 years at 4% or below 4% ?
