CBA tightening it's lending!!!

What's you're specific reason to only want to use most recent year?

Are you new to bring self employed?

Has something changed in your financial/personal situation that would mitigate and increase over the last two years.

Two weeks ago would of been able to say CBA most recent year no problem, it was out of policy but if it made sense they would still look at it. Before the APRA pressured policy changes that have happened, the CBA credit team had been advised a few weeks earlier that no more out of the box deals. I believe the changes would of come from the initial pressure from APRA.

So for now CBA is very black and white with its policy, this is very unfortunate as previously they were great with deals that made sense.

 

thanks Brady
Recent purchased ips within 2yrs with rents reflected in the current financial yr but not before that, a lot of extra depreciation to go with that and some increase in normal income would mean it would favour servicing a lot better if the current financial year was used solely and wasn't averaged and diluted down by the previous financial yr, where overall income was lower.

So cba no longer does 1yr financials at all?, is it?

thanks

 

With our recent case, it related to taking a year of research where the applicant saw a drop in income. Applicant was self employed, however, is currently PAYG.

Two years ago his income was very high however, last year his self employed income was low due to taking a year off to do research to complement in an area where he wanted to become a consultant.

Provided PAYG and last two years tax returns and bank went off most recent tax return (though PAYG and previous years tax return was similar)

 

So while your business income is similar over two years, your investment income has increased? This is something an assessor can see thru, I wouldn't be worried showing two years if that is the only variance.
While each lenders calculators are different, Each will have a slightly different result for each individual. just get someone to run your numbers through a couple of the calculators and see which one suits.

 

thanks tobe

 

thanks watson.
What are some of the conditions cba have on their medico policy, and your thoughts on west pac's medico package
many thanks

 

• All applications are subject to credit approval and credit officers reserve the right to decline LMI/LDP waiver requests.
• Customers who aren't employed are not eligible for the offer, for example students or retirees.
• Customers should be individuals. Trust and companies are eligible for investment loans.
• Evidence of savings and/or equity for applications involving the purchase and/or construction of a property with a base Loan to Valuation Ratio (LVR) greater than 85%. Refer to Credit Policy - Savings and Equity for Borrowers for further information.
• Evidence of profession and registration must be included in the supporting documentation.
• It is available under a Mortgage Advantage Package (MAV). The MAV package fee will continue to apply on all loans and there will be no additional interest rate discounts offered outside of the current package discounts.
• The repayment type must be Principal and Interest for Owner Occupied loans.
• The repayment type can be Interest Only for Investment loans.
• The maximum loan amount is $2m (per security) with LVR < 90% or up to $3m (per security) with LVR≤85%.
• The maximum lending is $5m per customer.
• Home Seeker Loans are included.
• Low Doc loans are excluded.

Main ones which differ from STG include evidence of genuine savings, P+I for owner occupied and no pricing discretions (not sure if this is non negotiable).

Wespac's medico policies are pretty much a carbon copy of STG, however, with Westpac removing negative gearing, STG would be more generous.

 

I believe Westpac allow security value to be greater than 2mill, TAE up to 7.5mill.

Westpac outdo CBA and ANZ here.

 

W

Wow thanks watson

Ppor at p+i, if that is a certainty, that in itself is a deal breaker for anyone wanting to build ip portfolio

Thanks

 

Not sure how rigid CBA are with those policies as I we haven written one with CBA in a few years. Most of the medico deals we send straight to BoM otherwise it is ANZ.

 

Banking sector employee here...my hunch is that your account was deemed dormant under unclaimed monies legislation and therefore CBA would have been obliged to close it. If you had money in it, it could easily have been passed to ASIC

 

Two different segments of income they would be looking at. Your rent would be easily verified by rental statement. Your self employed income would be verified over the two years, as long as no more than 20% variance the average would be used, this is for your business income not looking at rent and related rent expenses. Bad on the info you have provided doesn't sound like you would have too much troubles.

I've been told from my friend high up in the credit team that the book is closed on out of box policy stuff even if it makes sense. This is for now, I hope that some of the policy are tweaked over time or a relax to some more common sense banking.

CBA will still do 1YR for </=80% LVR

 

thanks brady

does cba allow more than 1 val per year, if u believe your property has gone up in value
i.e. if it was 3months apart
thanks

 

No restriction on the number of valuations, valuations are active for 90 days. With reason can do valuation as often as often as needed (renovations/market changes/comp sales etc). That's for shortform valuations.

Can do AVM (automated electronic / desktop) valuations everyday if you wanted. These can be used for 80%

 

CBA AVM's are a thing of beauty

 

Haha agree - but can only be used for <$1mill.

In NSW the results are brilliant - have had a few clients see $150k+ gains in less than a year. Sometimes the AVM's are well above expectations.

 

Shhhhhhhh it getting harder and harder with them we don't want to lose that as well.

 

if u use 80% can you use avm right after settlement? or do you have to wait 3-6 months?

 

I had someone ask me this and I couldn't see why you couldn't straight after settlement. I've been meaning to look at this closer