APRA changes ?

Discussion in 'Loans & Mortgage Brokers' started by euro73, 21st May, 2019.

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  1. Rex

    Rex Well-Known Member

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    You'd need to be on a variable rate of 2.9% or lower to get to the floor rate though
     
  2. Lucki

    Lucki Well-Known Member

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    While I don't expect credit to get easier, I do anticipate that more will be allowed to be borrowed. How much is the big question, but lot will depend on individual circumstances. I suspect it is taking time within lenders to tweak their processes, policies and systems to allow their new calculators to work seamlessly.

    I've been playing with a couple of calculators from non bank lenders and for our own scenario, our capacity has gone up by about $120K by my rough calculations based on floor rates dropping to 5.75%. I have no plans or in no hurry to use up the extra borrowing capacity, but will be interesting to see what the numbers look like with lenders using even lower assessment rates like 5.30%.
     
  3. Lucki

    Lucki Well-Known Member

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    Another 2 - 3 months and we may indeed see rates around the 2.9% mark more commonly.
     
  4. shorty

    shorty Well-Known Member

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    APRA should have made a sensible decision to allow flexibility to allow banks to refinance existing loans at the same amount where payments are up to date and financial circumstances haven't changed.

    They've effectively locked people into staying with their current lender if they can no longer pass servicing for their existing loans due to the policy changes.
     
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  5. Lacrim

    Lacrim Well-Known Member

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    The banks (obviously) aren't complaining.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Assessment rates dropping means borrowing power increases slightly. About 5% - 15%.

    It has nothing to do with easier credit. That's only gotten harder.
     
  7. Blueskies

    Blueskies Well-Known Member

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    Can anyone advise if these changes actually been applied to the bank calculators yet? For example is it worth me going into WBC yet for a top up? Thanks
     
  8. FXD

    FXD Well-Known Member

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    I've heard that WBC is updating its HEM again next week and it may be "less" strict than current one. ANyone got winds of this ?
     
  9. Chomp

    Chomp Well-Known Member

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    That's the problem right there you used the words APRA and sensible in the same sentence.

    If they did implement this then then the RBA probably wouldn't have had to drop the cash rate again.

    It would be interesting to see a percentage of mortgages which can not be refinanced after the changes.
     
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  10. Lucki

    Lucki Well-Known Member

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    HEM only goes up as far as I know, and not down.
     
  11. Lacrim

    Lacrim Well-Known Member

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    Any mainstream lenders out there relaxing lending/refinancing criteria in light of COVD19 and the cash rate being lowered to 0.25%?
     
  12. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    breathe :)

    ta
    rolf