CBA has done it too. 27 points August 10th

CBA is still a great lender to build your initial foundation with due to their overall policy mix, however with current rates its getting more and more difficult to ignore the rate spread.

We're generally advising that if you're going into LMI territory that it's best we still place the lend with CBA for intial purchases, otherwise at 80% LVR it can be possible to look at other options which can be refi'd out later if flexibility isn't there for their longer term goals.

As always there are exceptions to the rule and it is largely dependent on the individuals personal cicumstances.

 

The government is going tax and spend and further ****** economic growth. I would put my money on a long drawn out period in which interest rates continue to be lowered.

 

It's probably worth mentioning that if the account was originally setup as PPOR then became an IP, it wouldn't be affected by the CBA increase. According to the mortgage expert that I spoke to last night, CBA's systems would still classify the accounts on how they were originally setup (based on the newsletter, the increase only affects IP).

 

I have the oppose situation. I bought an a property with the intention to have it as an upgrade PPoR. however at the time it had tenants with a fixed term contract. So we purchased the place as an IP and rented it out for 6 months. Then moved in. The loan on this property is the largest of all the loans, so I would prefer if the bank had the most up to date information on record. IS there anyway to tell how the bank sees each loan (IP or PPoR) in commbank?

 

It will be classified as it was when the loan was written. If you find your rate goes up and it legitimately is a PPOR - let your broker know and they can have the pricing reflect the correct type.

 

Thanks for that. I just emailed CBA letting them know what my current primary place of residence is, and asking them to change it.

 

Thanks Corey.

I'm in a position where I rent elsewhere to live, but have 1 property declared as ppr for tax purposes. Though I don't live in it 'right now' I did live in it for about 18 months after first buying it. Thing is.. it was an OO loan on it at purchase via a tier 2 lender. I then re-fi'd to CBA as an investment loan.

Do you think I can call CBA and ask that for this loan, can it switch back to being an OO-loan again since I am not declaring any of my other loans to be OO?

 

Pigs arse...they are the most unethical bank out of the Big 4...I would encourage all investors on this site to not deal with the CBA on principal if you can.

They have become very arrogant...they are run by ex-McKinsey consultants who know nothing about retail banking.

By the way I have heard they are also uping their fixed rates to the following:

- We are increasing our Variable Rates for new and existing Investment Home Loans by 27 basis points effective from Monday 10 August 2015.

- We are also increasing our Fixed Rates for new Investment Home Loans effective from Friday 31 July 2015.
- The 1 Year Fixed Rate is increasing by 0.30% to 4.79% p.a.
- The 2 Year Fixed Rate is increasing by 0.40% to 4.89% p.a.
- The 3 Year Fixed Rate is increasing by 0.40% to 4.89% p.a.
- The 4 Year Fixed Rate is increasing by 0.30% to 4.99% p.a.
- The 5 Year Fixed Rate is increasing by 0.10% to 4.89% p.a.

My advise is get out of the CBA before you get screwed. They are up there with MacBank in terms of the lack of integrity. Just look at what they latter did to investors during the GFC...this is the what CBA will do.

I for one..have kept the ones I can't get out of - ie. fixed rates but are definitely not giving them anymore loans. My broker is doing the same...she has found them no longer investor friendly.

 

Nothing to do with APRA...more about exec bonuses at CBA...I think you will find the language a bit different at Westpac/St George...

By the way the clowns at APRA are creating a future problem.....since when were 95% lends for first home buyers with low deposits safer? Which f-knuckle hired the clowns at the RBA and the head of APRA?? Don't mess with the market....sure put controls in..maybe by post code...but don't mess with the market...dumb idea...it will cause all sorts of issues.

I can see a massive issue in Sydney with off the plans...a lot of people have bought off the plans and still buying where they won't settle for 2-3 years. Will be interesting what happens to them when they find that these don't val or don't qualify for a loan...what happens then??

I am still qualifying for LMO loans...but the paperwork is insane!!!!

 

I saw in the finance section on the news last night (can't remember the channel) that the rate increase would be passed on to PPOR loans where the loan was IO. Any truth to this?

 

The NAB has done this, not the CBA.

 

You don't declare a PPOR for tax purposes until after the sale.

Sounds like an investment loan to me as it relates to renting out the property that the money was used for. You can always ask but don't like your chances if you are not living there.

 

Thanks Terry, I thought as much. I'm actually refi-ing my ppr out to another lender anyway.