Changes / tightening on servicing for investors

KangaBanga

• 25th May, 2015

• #261

NAB's capital and dividends in spotlight after $5.5 billion raising

westpac and NAB have already started the ball rolling...

http://www.smh.com.au/business/banking-and-finance/nabs-capital-and-dividends-in-spotlight-after-55-billion-raising-20150510-ggy63r.html

Westpac dividend reinvestment to boost tier 1 capital ratio

 

U

unloadmymind

• 25th May, 2015

• #262

S&P estimates that $18 billion will need to be raised by banks to bolster regulatory capital.

That is the amount that banks could potentially use for lending. Assuming a 2% margin, that's $360 million in potential lost profits per year by the banks.

 

J

jerrybee

• 25th May, 2015

• #263

Marty McDonald said:

I did always think it was amusing that lending to individuals at 90-95% was considered imprudent but the banks were only holding 5-10% equity themselves on their massive mortgage books.

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HA! Hilarious when you think about it like that...

 

U

unloadmymind

• 25th May, 2015

• #264

Considering how much government guarantee the banks get for deposits, they (and the public) have become complacent about their equity.

 

S

Sonamic

• 25th May, 2015

• #265

It's happening.

I presented my Broker with my completed Build Contract today to finance an IP construction and was told he'd had a tip off this morning that NAB are tightening their restrictions as of today/tomorrow. My land has Settled and the Construction was pre approved so I'll be ok.

Any Brokers get the same "little birdy" tip off?

 

R

Rolf Latham

• 25th May, 2015

• #266

Sonamic said:

My land has Settled and the Construction was pre approved so I'll be ok.

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dont ever rely on any lender navigating the moral hazard in the most appropriate way.

Im guessing you are right, but the one I was fed today about existing clients of one lender being stuck and why is quite interesting

ta
rolf

 

Jess Peletier

• 25th May, 2015

• #267

Yep, got it last week. I've mentioned it on here somewhere. Word is NAB is going to 80% LVR for investment if the goss is to be believed.

 

S

Sonamic

• 25th May, 2015

• #268

Thanks Rolf and Jess. Mine is at 90%. Hopefully it will sneak through.

 

I

Investig8

• 25th May, 2015

• #269

Thanks guys.

So who do we have left at 90 LVR + LMI? I'm guessing some smaller solutions looking for market share at perhaps slightly higher rates?

 

Marty McDonald

• 25th May, 2015

• #270

Haven't heard the 80% lvr rumour about nab. More likely to go 7.4% p&i 25 yrs I think.

 

Marty McDonald

• 25th May, 2015

• #271

Investig8 said:

Thanks guys.

So who do we have left at 90 LVR + LMI? I'm guessing some smaller solutions looking for market share at perhaps slightly higher rates?

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For purchases? Still everyone besides Bankwest....so far.

 

Jess Peletier

• 25th May, 2015

• #272

Marty McDonald said:

Haven't heard the 80% lvr rumour about nab. More likely to go 7.4% p&i 25 yrs I think.

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Word on the street is both. Yuck.

 

R

remingbi

• 25th May, 2015

• #273

Why p+i at 25yrs and not 30yrs?
Is there any reason left to use nab rather than the other majors as their service is crap? I/o period terrible also?

 

Marty McDonald

• 25th May, 2015

• #274

remingbi said:

Why p+i at 25yrs and not 30yrs?

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Just to be more ridiculously conservative

Assuming first 5 year IO then the trend is to service the 30 year total loan over the remaining 25 years. Another buffer on the buffers on the buffers

 

GreyGhost

• 26th May, 2015

• #275

As of 30/5 NAB are no longer doing smsf lending.
Suncorp will only do smsf lending to existing customers so not to loose clients.

 

J

jerrybee

• 26th May, 2015

• #276

How's Homeside? (NAB broker or whatever they're called now)

In looking to do an IO extension in 2 months.

 

R

Rolf Latham

• 26th May, 2015

• #277

When would NOW be a good time....................

ta
rolf

 

G

gradeng

• 26th May, 2015

• #278

What's the process for PPOR loans that are turned to IP loans in the future? We are in the process of getting a 75% 3yr fixed / 25% variable with offset loan for our first property (PPOR). It will be IO with 89% LVR and we intend to live there for 12-18 months.
Once it's converted to an IP at that point, will there be any negative repercussions?

 

Jamie M

• 26th May, 2015

• #279

Jess Peletier said:

Yep, got it last week. I've mentioned it on here somewhere. Word is NAB is going to 80% LVR for investment if the goss is to be believed.

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Just got word that they will reduce LVR's on IP loans - but it will be higher than 80%

Changes coming within next couple of weeks

Cheers

Jamie

 

devank

• 26th May, 2015

• #280

Just got an 'unconditional approval' from NAB for 516k interest only loan with 1.02% discount. It is 80% loan.