Westpac has announced that they will now lend up to 85% for owner-occupiers and investors without the need for mortgage insurance. The property will have to be in a metro area (not country and not inner city). The change is effect next Monday (13th). This is a huge change. It will be interesting to see if other banks will follow.
Westpac - 85% - No LMI
- Thread starter StuartW
- Start date
That's another indicator that the mortgage market is very competitive at the moment. More of a buyer's market than a seller's market.
Cheers,
Cheers,
Hi,
also, as of next week, Westpac will allow your rent payments as genuine savings on mortgage insured loans.
You need to provide proof that rent was paid over a period of 12 months (letter from the real estate agent confirming that rent was always paid on time and in full).
also, as of next week, Westpac will allow your rent payments as genuine savings on mortgage insured loans.
You need to provide proof that rent was paid over a period of 12 months (letter from the real estate agent confirming that rent was always paid on time and in full).
Hi Ya
Having trouble with westpac valuations currently. I was speaking to BDM in Perth and he mentioned about the 85% Lend No LMI but quickly added that this idea was derailed at the last minute so it's not going to happen on 13th Feb.
I said pity about that but it would have solved all my headaches.
So if this is likely to happen
Otherwise I've got a battle with westpac and their valuers( one in particular on their panel of valuers Ray White Valuers in Perth).
If someone can shed more light to this subject much appreciated
Jerry N
Having trouble with westpac valuations currently. I was speaking to BDM in Perth and he mentioned about the 85% Lend No LMI but quickly added that this idea was derailed at the last minute so it's not going to happen on 13th Feb.
I said pity about that but it would have solved all my headaches.
So if this is likely to happen
Otherwise I've got a battle with westpac and their valuers( one in particular on their panel of valuers Ray White Valuers in Perth).
If someone can shed more light to this subject much appreciated
Jerry N
Have just been informed by Westpac that it is on hold for at least 2 weeks.
Just spoke to the help desk at Westpac. The help desk girl said she didn't know about it and she went off to query it with her supervisor, she came back and it is coming in but they don't know when (so 2weeks as rolf said or indefinately).
Be wary about talking to the help desk as I've done it twice and have got one person saying they "heard a rumour too" and another saying "i don't know about that".
Speaking about helpdesk i called acouple of times to clarify if I need to sput up any cash on an opportunity - I had one person who answered my query briefly didn't tell me much and another who took ages and tried 3 different ways to tell me something I already knew, I swear this lady was Entish.
If you made an application now but the papers took 3 weeks to write up would you pay the LMI based on the 80% (that applies now) or the 85% (thats coming) cut off rate.
keg75
Be wary about talking to the help desk as I've done it twice and have got one person saying they "heard a rumour too" and another saying "i don't know about that".
Speaking about helpdesk i called acouple of times to clarify if I need to sput up any cash on an opportunity - I had one person who answered my query briefly didn't tell me much and another who took ages and tried 3 different ways to tell me something I already knew, I swear this lady was Entish.
If you made an application now but the papers took 3 weeks to write up would you pay the LMI based on the 80% (that applies now) or the 85% (thats coming) cut off rate.
keg75
Hiya Keg
Subject to you having enough time to reowrk the loan through the policy (once it arrives ...............................) then youd get the 85 % lend, sans LMI.
ta
rolf
Subject to you having enough time to reowrk the loan through the policy (once it arrives ...............................) then youd get the 85 % lend, sans LMI.
ta
rolf
Rolf,
I went to see my priority banker at WBC on Wednesday to organise pre-approval for my IP loan. I mentioned the 85% LMI threshold and she said "Yes, that was supposed to start last week but they've put it on hold for the time being. I wish they hadn't advertised it so much." Don't know if she was feeding me a line, or whether it genuinely is on hold for a bit.
Anyway, I have more than 20% deposit in my LOC and got pre-approval to $550K so am good to go with the next IP.
Cheers,
Michael.
I went to see my priority banker at WBC on Wednesday to organise pre-approval for my IP loan. I mentioned the 85% LMI threshold and she said "Yes, that was supposed to start last week but they've put it on hold for the time being. I wish they hadn't advertised it so much." Don't know if she was feeding me a line, or whether it genuinely is on hold for a bit.
Anyway, I have more than 20% deposit in my LOC and got pre-approval to $550K so am good to go with the next IP.
Cheers,
Michael.
Damn WBC, why do they introduce the 0.7% discount + now a 85% LVR with no LMI after I leave!
I miss having so much transaction history online, unlike the piddly 100-120 days other banks give you. I could go back years. This would have come in handy when I had to check some 8 months old payments last night.
I miss having so much transaction history online, unlike the piddly 100-120 days other banks give you. I could go back years. This would have come in handy when I had to check some 8 months old payments last night.
Be careful....even though they are saying their is no LMI on a 85% loan, I would not be suprised if they are actually taking out LMI (and paying for it themselves) behind the scenes. The reason would be that the RBA puts a larger capitakl requirement on the bank for loans above 80% that are not insured, so in some cases it is cheaper for them to pay for the LMI themselves rather than hold the additional capital amount.
Who cares if they lake LMI out behind the scenes. If your not paying and you don't have to come up with as much $$$ upfront then it good.
Just be carefull that they don't have early payment fees or deffered settlements to sting you with if you leave with a certain period.
domcc1 just go back to them...
I just called the bank and i think they have either no F*$cking idea or they have no f^$king idea -
The lady I just spoke to told me that the lmi rate has always been 85%.
I asked "are you sure, would you like to confirm that" and she's gone, no one's here at the moment. I said maybe she should check with her supervisor.
After she came back she told me that the rate is now a whopping 90% and I get in a smarmy tone "does that help you anymore??"
I said thanks and hung up.
I'm very confused.
I don't really give two hoots either way as to whether it's 80, 85 or 90% it's just that when the bank help desk has no f$5king Idea what chance does someone who's new to the game or very naive have, to get good information.
anyway my two bobs worth on this matter for today..
cheers keg75
The lady I just spoke to told me that the lmi rate has always been 85%.
I asked "are you sure, would you like to confirm that" and she's gone, no one's here at the moment. I said maybe she should check with her supervisor.
After she came back she told me that the rate is now a whopping 90% and I get in a smarmy tone "does that help you anymore??"
I said thanks and hung up.
I'm very confused.
I don't really give two hoots either way as to whether it's 80, 85 or 90% it's just that when the bank help desk has no f$5king Idea what chance does someone who's new to the game or very naive have, to get good information.
anyway my two bobs worth on this matter for today..
cheers keg75
Hi Keg
Its like ringing up the pharmaceutical co and asking them about the new bird flu vaccine :O)
patience grasshopper .....................
ta
rolf
Its like ringing up the pharmaceutical co and asking them about the new bird flu vaccine :O)
patience grasshopper .....................
ta
rolf
MichaelWhyte said:domcc1,
What 0.7% discount, they just gave me 0.8% discount on all my loans...
Cheers,
Michael.
That's good for your level of debt (from your sig)... I'm currently on 0.75% with NAB so it's not all that bad. It was around a year ago today I left and at the time they weren't interested in being competitive.
