What fixing really means
- Thread starter freyja
- Start date
indeed, if you stay with the same lender it is possible to do an equity release before the end of the fixed rate period. However, if that lender has a conservative servicing calculator, or a conservative valuer, your stuck unless you break the fixed rate.
With a variable rate you have a lot more flexibility.
With a variable rate you have a lot more flexibility.
Tobe summed it up really well - flexibility with a variable rate. Greater flexibility still when the LVR is sub 80%.
If you plan on doing equity releases over the fixed rate horizon and you're not in LMI territory, it probably makes sense to have a variable rate (or shorter term fixed).
Cheers,
Redom
Is CBA a conservative lender? Was looking at taking advantage of low fixed rates in the next few months. It's my only property. Prob sitting around 74% lvr at the moment.
I'd suggest that the CBA is about in the middle of the field for affordability calculations.
At this point the indicators I'm seeing suggest that there could be more rate cuts, especially in fixed rates. I don't think we're at the bottom yet.
At this point the indicators I'm seeing suggest that there could be more rate cuts, especially in fixed rates. I don't think we're at the bottom yet.
Who do you brokers think are the most conservative regarding serviceability out of the main banks. Just so I know who to avoid 
really depends on what your portfolio looks like now
a single ppor and an IP means many lenders are similar
if you have a structured portfolio and are near ur limits hn NAB APM macq bank, ABL choicelend etc come to the fore
ta
rolf
a single ppor and an IP means many lenders are similar
if you have a structured portfolio and are near ur limits hn NAB APM macq bank, ABL choicelend etc come to the fore
ta
rolf
Who do you brokers think are the most conservative regarding serviceability out of the main banks. Just so I know who to avoid
There's no straight answer. It depends on your circumstances.
For example ANZ tends to rank fairly low for serviceability and using them early can hamstring your investment strategy later. Under certain circumstances they can be really useful however. Their valuation and other policies can be really useful in getting some tricky deals over the line.
It can be argued that Westpac is reasonably generous in servicing. There comes a point though when they start to see investors as self employed and want tax returns instead of payslips. This can cause all sorts of problems.
I agree with Rolfs short list of lenders that can be really useful later on, but under the right circumstances these lenders can be useful earlier on without significant adverse affect later. It's easy to determine who'll come out on top later, but it takes experience to understand what really works best in the initial stages.
I assume their little brother St George is the same. They started asking for tax returns a while ago :/
ANZ is a bit easier to deal with purely on a cash out basis. Other policies may also come into it depending on your circumstances.
Thanks peter.
So if someone was to refinance later because they were with anz or one of the other stingy lenders, and could not release further equity,and u got some equity growth in your ips and ppor, which one of the 4 banks rolf mentioned r good for cashouts of ppor or ip's at 80 or 90% in the future
Ie nab, amp, macquarie,abl, choicelend, or any other actual payment lenders
Thanks
So if someone was to refinance later because they were with anz or one of the other stingy lenders, and could not release further equity,and u got some equity growth in your ips and ppor, which one of the 4 banks rolf mentioned r good for cashouts of ppor or ip's at 80 or 90% in the future
Ie nab, amp, macquarie,abl, choicelend, or any other actual payment lenders
Thanks
