CBA tightening it's lending!!!

Im a former cba customer. A few months ago I approached them with my financials applying to draw out more equity. They declined. I refinanced with ANZ and impressed with their service. CBA have gone downhill in the last 5 to 10 years in my opinion. A few years ago they cancelled my LOC without telling me because I had not used it for 3 yrs.

 

As the South Australian Exec Manager for CBA said at a function I was at two weeks ago - unfortunately the rest of Australia is paying for the sins of the Sydney market.

Such an interventionist policy, it's surprising they didn't include geographic parameters to target their real concerns.

 

Wow. I thought cba were still more generous in their servicing calculators than anz
How is it that cba declines and anz approves?
Thanks

 

For the most part they are, however there are some circumstances where ANZ's self employed income policy can provide much stronger servicing than CBA - with recent changes this year this is only as relevant in certain LVR ranges.

I wouldn't be surprised if this was the case with David's scenario.

 

Man

 

Many brokers have commented that they prefer anz for 90%lvr cashouts for self employed for 1yr financials.
Is that why?

Thanks

 

Cashout across the board with ANZ at that level is great - not just self employed applicants.

The main benefit for CBA vs ANZ with self employed applicants is that ANZ will run off the latest years financials instead of averaging the two figures like CBA standard policy requires in LMI space (and up until recently to all LVR's)

For example, let's say Mr Joe Self employed FY13 net income was 100k and FY14 next income was 200k, CBA would only take 120% of the FY13 figure (maximum of 120% year increase allowable for servicing), whereas ANZ standard policy would only require the latest return and accept 200k net income at face value.

CBA can run off 1 yr as an exception to policy, but that's still a poor fix to ANZ's standard policy in this regard.

 

CBA will go off one years if LVR is less than 80%

ANZ will go off one year irrespective of LVR.

Cheers

Jamie

 

Will cba use 2yrs financials for 90%no lmi doctors loan or 1yr, given there is no limi
thanks

 

theyd like to use 2 years, but no doubt you could make a good case to use one. ANZ do 90 no LMI for doctors too, so if there isn't a pressing reason to use cba it might be easier to do it with ANZ instead.

 

thanks tobe
would anz servicing calculators be similar to cba now given their recent changes in the 90%no lmi space

thanks

 

ANZ's serviceability is still reasonably lower than CBA's.

 

For Medico, STG/BOM will go off most recent tax return as policy which was something I learnt from one of their lending champions a few days ago.

If I recall, STG only go of the current years tax return but you need to show both and I believe it has to work still with the previous year which means very little. Also, they have a funny way to calculate leases etc.

In my opinion STG/BOM have the best medico package out there. You see a lot of those accounting firms/specialists who look after the medicos procure all their loans from STG or Westpac at the flame forums.

Their serviceability is much better than CBA and ANZ especially since if you want 15 years interest only, they don't reduce the term for serviceability. CBA also have a lot of conditions to their Medico policy which BoM and ANZ do not have.

 

thanks corey
would west pac rate similar to cba

thanks

 

Thanks Watson1. so does BOM also look at one yr financials and are they independent of st george bank or are they the same
thanks

 

BoM looks at one year for medicos, st george/bank of melb/bank sa are all the same just different branding and have the set of assessors following same set of policies.

Straight from the policy manual

"In the case of established self employed medicos, the income stated on the last completed tax return is adequate. Tax returns may be used until May 31 each year, rather than limited to the normal policy requirement of February 28."