CBA investment loan

Discussion in 'Loans & Mortgage Brokers' started by TaylorChang, 3rd May, 2017.

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  1. TaylorChang

    TaylorChang Well-Known Member

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    Hi all,

    I am fighting for my clients' loan application.
    Almost exactly identical income figures and situation (clients are sisters), purchasing the new investment property at same location ( same complex).

    Last year this time, it was relatively easy for CBA to approve the loan.
    Now (Apri/May 2017) it was sooooo hardship on policy.

    As the CBA assessor said " anything out side of the policy with investment loan favour, they will not even consider...... ie straight away decline !!

    Not sure if other brokers/investors are facing the same experience with CBA right now.... :(

    I knew it was hard, but it was much much harder than what I thought.
     
    TaylorChang, 3rd May, 2017
    #1
  2. Yson

    Yson Well-Known Member

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    What does he mean by outside investment loan favor?
     
    Yson, 3rd May, 2017
    #2
  3. Corey Batt

    Corey Batt Well-Known Member

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    Lending rules have change dramatically in the last few months, let alone a year ago - don't rely on any previous experiences.

    What's the issue - what is out of policy exactly?

    CBA has expressed to brokers a number of times recently that they don't want to see anything but nice clean simple deals at the moment if you want it approved.

    If it's not within their policy, the question begs why CBA? Their pricing isn't a driving force at the meantime, so you would want policy to be otherwise..
     
    Corey Batt, 3rd May, 2017
    #3
    Ethan Timor, Phantom and tobe like this.
  4. TaylorChang

    TaylorChang Well-Known Member

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    It's about security and jointly business loan.
     
    TaylorChang, 3rd May, 2017
    #4
  5. TaylorChang

    TaylorChang Well-Known Member

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    Existing business loan if jointly own it can be proportionally factoring into the servicing previously. As long as there is an evident showing the other party have ability to service the loan.

    Now, CBA will not even consider it at all. straight away decline.
     
    TaylorChang, 3rd May, 2017
    #5
  6. Redom

    Redom Mortgage Broker Business Plus Member

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    Yep this is pretty common nowadays, anything that falls outside standard policy is being declined by CBA. Would you believe in 2017 mat leave is an 'exception' from the countries largest bank.

    Anything a little bit different thats investment doesn't go to CBA now.
     
    Redom, 3rd May, 2017
    #6
  7. Brady

    Brady Well-Known Member

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    Out of policy exceptions for investment lending with CBA at the moment is a straight up NO - has been like this for a little while.
     
    Brady, 3rd May, 2017
    #7
    Ethan Timor and tobe like this.
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    They make it tough for us.

    Move onto the next. Workshop the scenario with your BDM prior to submitting - last thing you want is another knock back.

    Cheers

    Jamie
     
    Jamie Moore, 3rd May, 2017
    #8
  9. Corey Batt

    Corey Batt Well-Known Member

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    This. That's a pretty easy variable to take care of - you'll be fine.
     
    Corey Batt, 3rd May, 2017
    #9
  10. Gockie

    Gockie Life is good ☺️ Premium Member

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    Its all APRA.
     
    Gockie, 3rd May, 2017
    #10
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Its not so much the market generally, but the APRA Induced Indigestion that CBA has caused itself in in its investment lending growth, in part as a result of its predatory pricing policy a little while back.

    ta
    rolf
     
    Rolf Latham, 4th May, 2017
    #11
  12. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Its incredibly interesting to see what sort of business lenders want and how they go about incentivising brokers and banks to bring them that business.

    You can see Westpac's book is heavily IO based and as such they are through everything at P&I lending. It doesn't matter if its over occ or investment - they are just hungry for P&I lending.

    Whereas CBA doesn't care about P&I lending - they just want the owner occ stuff.

    The fact of the matter is that CBA are still an important lender in the market due to their overall policy set. They have some excellent niches.

    Rolf is right though a lot of this stuff is self inflicted.
     
    Shahin_Afarin, 4th May, 2017
    #12