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CBA tightening it's lending!!!

Discussion in 'Property Finance' started by sumterrence, 23rd Jun, 2015.

  1. sumterrence

    sumterrence Well-Known Member

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  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No they wouldn't be required to add more cash or pay down loans, but they would just not be able to borrow any more with CBA. Perhaps they may have equity which they cannot tap into.
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    They won't have to reduce LVR's - they'll just have to be careful with future loan structuring and if they can't release equity on their current loans with CBA, they'll need to find another lender more conducive to their needs.

    Cheers

    Jamie
     
  4. Depreciator

    Depreciator Moderator Staff Member

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    It's going to affect people settling on OTP purchases I imagine. They will have to stump up extra cash on settlement.
     
  5. Arashi87

    Arashi87 Well-Known Member

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    20% deposit 80% loan shouldnt be any problem
     
  6. Depreciator

    Depreciator Moderator Staff Member

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    But if people managed to only put down a 10% deposit a year ago on an OTP property and were banking on a 90% loan upon settlement, they might need to start looking under the cushions on the lounge or somewhere for some extra cash.
     
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  7. Arashi87

    Arashi87 Well-Known Member

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    Don't think that will affect many people with OTP but if bank valuation drops then most people in Syd will have a panick attack
     
  8. sash

    sash Well-Known Member

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    Ditto ...boys...if that happens...hello sailor....I think it will present some buying opportunities....as Warren Buffet said money moves from the impatient to the patient....
     
  9. Coota9

    Coota9 Well-Known Member Premium Member

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    Picture this conversation in 12-18 months time with FHB couples that brought units off the plan and are trying to settle with a bad bank valuation.

    Look..er..um..Mum and Dad we need 40k to settle on our apartment as our valuation has come in low..can you lend us the money??

    Nope sorry we invested in the SYDNEY market which is great but now we can't access the equity due to serviceability restrictions..sorry guys!!
     
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  10. sash

    sash Well-Known Member

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    Gold...don't tell too many of the lemmings who think the Sydney market will never go down..I want kindly take if off their hands for a discount. Playing out exactly like other cycles...

     
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  11. teg499

    teg499 Well-Known Member

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    My thoughts exactly. Can't wait for Syd property to go down so that I can go shopping and pickup some good quality assets at bargain prices.

    Which Syd suburbs u think will be hit hardest in a downturn? Mainly OTP stock?
     
  12. Bargain Hunter

    Bargain Hunter Well-Known Member

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    Let the good times roll at least a little longer
     
  13. teg499

    teg499 Well-Known Member

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    Yep. For sure. But in good times its not worth buying anything.. When u have the property bug u just want to find and buy the next bargain. So much easier to do this when the market is dead.
     
  14. Arashi87

    Arashi87 Well-Known Member

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    I want to know this as well , what type of suburbs will fall the deepest?

    High dense apartment ? Not necessarily ...
    Plus away from cbd 20km? Maybe ...
     
  15. sash

    sash Well-Known Member

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    Welcome fellow propoholic...hic..cheers..:)

     
  16. teg499

    teg499 Well-Known Member

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    Thanks Sash. It's great learning from experienced property investors. Love SS and the new PC forum.
     
  17. sash

    sash Well-Known Member

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    :):oops:Moi experienced...nah.......I am just a punch drunk newbie Sydney investor.
     
  18. Redom

    Redom Mortgage Broker Business Member

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    Can see this - but a guarantor option will likely do here for equity shortfalls, so long as the FHB's can service the extra debt.

    FHB usually fall short in the deposit side of things rather than the serviceability ('they've usually got the starting point of a 'good job' that Hockey wants them to have!).

    Cheers,
    Redom
     
  19. Redom

    Redom Mortgage Broker Business Member

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    Policy changes may effect repeat investors who have purchased OTP - but the chances of NO OPTIONS being available is quite remote at this stage.

    There were probably 10+ lenders that had great serviceability calculators for investors. Most only ever needed the top 5-6 and never went to Firstmacs, Homeloans, etc.

    Now because the major 5-6 (Macq, NAB, Adelaide, AMP, Advantage, etc) have shifted, the smaller lenders will come into focus.

    Hence the option to finance is still there...but walking into the same bank they've always gone to may pose a problem. New solutions necessary to the same finance questions of earlier this year.
     
  20. Bargain Hunter

    Bargain Hunter Well-Known Member

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    There's more than one property market in Australia.
     
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