Take the money and RUN!!!

Also is it just the 7% part (or whatever the rate is) that's new, or is the P&I part new too?

No it doesn't look like their assessment rate has changed - just the way they treat debt with other banks is now the same as the way they treat debts held with them. AMP did this change not too long ago.
Hi Redom,

Would you suggest that I pull equity out of one my properties now rather than later?

Hi Larry - if your servicing is tight and relies on your other mortgage debts to be treated favourably (so if you have large mortgage exposure) - then yes, its prudent to do it now and take away the risk of policy changes stopping you in future.