The Silence is Deafening ...Disappointed ... re cash bonds

rambada said:
I believe in the theory that if I earn a dollar, it is not only my right but obligation to use it most effectively. This allows me to expand as a person.
...........
I heard an interesting question - what would you do if you knew you were going to die in 24hrs? I am an ambo, and believe me it happens. Time is shorter than you think and today is here today.
Meanwhile, I'm packing the van and going to Straddie fishing!

Well said Ramada.......I couldn't agree more! :)
 
Hi all,

I have been following this thread and the one on invested.com with interest. Especially as Steve himself mentioned cashbonds with Westpac in a discussion about cashbonds a couple of years ago.

Three weeks have gone by and still no comment from Steve, either here OR on invested. However he does seem to have time to reply to other threads on this forum.

If one lender changes the rules (as in Westpac), what are the odds that others will follow suit over the next few years??

bye
 
Bill, See Change and others,

Put in the simplest terms, there have been lenders who in the past have accepted cashbonds and have, for whatever reason then decided not to accept them. However, there are lenders who do continue to accept them.

Okay, worst case scenario: ALL lenders refuse to see cashbonds as acceptable for serviceability. What to do? Simple answer: move on. Use other strategies. Remain flexible, change direction when they move the goal posts.

Cashbonds are not only just one tool in the toolbox, they are also very much a last resort, due to them being expensive to use (difference between interest earned from CB and interest charged on loan to obtain funds to purchase CB).

There are a number of ways to deal with specific issues arising from serviceability which differ from person to person and are dealt with as each case arises.

Mark.
 
Serviceability?

Mark Laszczuk said:
Bill, See Change and others,

Put in the simplest terms, there have been lenders who in the past have accepted cashbonds and have, for whatever reason then decided not to accept them. However, there are lenders who do continue to accept them.

Okay, worst case scenario: ALL lenders refuse to see cashbonds as acceptable for serviceability. What to do? Simple answer: move on. Use other strategies. Remain flexible, change direction when they move the goal posts.

Cashbonds are not only just one tool in the toolbox, they are also very much a last resort, due to them being expensive to use (difference between interest earned from CB and interest charged on loan to obtain funds to purchase CB).

There are a number of ways to deal with specific issues arising from serviceability which differ from person to person and are dealt with as each case arises.
Mark.

Hi Mark..Any chance of mentioning a few?

I think my next hurdle will be the sericeability issue, I guess I'll be looking at lo-doc/no-doc loans unless there are better options?

REDWING



REDWING
 
Back
Top