Credit Changes

Discussion in 'Loans & Mortgage Brokers' started by Shahin_Afarin, 19th Jun, 2015.

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  1. tobe

    tobe Well-Known Member

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    Its not called the westpac group for nothing. Rams also have their overflow assessed by westpac/st george team in Adelaide.
     
    tobe, 7th Jul, 2015
    #41
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    wesuck at 80 is the first of the big ones with hard cap............

    balance will soon follow

    ta

    rolf
     
    Rolf Latham, 7th Jul, 2015
    #42
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes, but like a kidney stone.
     
    Terry_w, 7th Jul, 2015
    #43
    wombat777, willair and Redom like this.
  4. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    It's a three prong attack.
    1) pricing
    2) borrowing capacity
    3) LVR

    What next

    4) ??? credit rationing based on bank relationship???
     
    Marty McDonald, 7th Jul, 2015
    #44
  5. Corey Batt

    Corey Batt Well-Known Member

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    Not a pleasant result from WBC, just need to see which is next of the dominoes to fall.
     
    Corey Batt, 7th Jul, 2015
    #45
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    three p.........s sounds better than a trident .............. this wont hurt a bit
     
    Rolf Latham, 7th Jul, 2015
    #46
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    least medicos and other industry MI exceptions still apply.

    ta
    r
     
    Rolf Latham, 7th Jul, 2015
    #47
  8. albanga

    albanga Well-Known Member

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    IMO investors need to start considering different strategies until things settle. Try their hand at flipping, subdivision, development.
     
    albanga, 7th Jul, 2015
    #48
  9. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Its only applies if the PPOR is cross collateralised according to BDM.
    [​IMG]
     
    Jess Peletier, 7th Jul, 2015
    #49
  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Oh, this is cheeky. Cross collateralise and you can go higher!
     
    Terry_w, 7th Jul, 2015
    #50
  11. Mick C

    Mick C Well-Known Member

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    Dont need to be crossed...just 2 deals done at the same time.
     
    Mick C, 7th Jul, 2015
    #51
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  12. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Not according to my BDM. I specifically asked and this was his response -
    "Hi Jess ,

    You will have to cross the two securities to get the 97% inc LMI for investment."
     
    Jess Peletier, 7th Jul, 2015
    #52
  13. Watson1

    Watson1 Well-Known Member

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    That LMI premium would be a killer when crossed.
     
    Watson1, 7th Jul, 2015
    #53
  14. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    They used to only do 97% if you had 10% equity in another property so if they now have to be crossed to get to 97% does this mean you need a third property with the 10% equity?!! I don't think they thought this bit through OR more likely the new maximum is 90% in most scenarios.
     
    Marty McDonald, 8th Jul, 2015
    #54
  15. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Thats my understanding as per CBA BDM.

    Moral of the story is "don't always believe your BDM"
     
    Colin Rice, 9th Jul, 2015
    #55
  16. Mick C

    Mick C Well-Known Member

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    ^ Agree,,,,
    If you believe everything and TAKE what the bank/ BDM says word for word ....Good luck.

    I always ask for a second opinion in writing and normally from the horses mouth themselves- the credit assessors - the one that approves the deal.
     
    Mick C, 9th Jul, 2015
    #56
  17. tobe

    tobe Well-Known Member

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    Westpac have just clarified,

    **Update to recent change to maximum LVR for new Investment Property Loans**



    Dear Tobe,


    Further to our communication issued Tuesday 7th July 2015 regarding the change to maximum LVR for new Investment Property Loans, we are pleased to provide this updated communication for your ongoing reference.

    When using an owner occupied property as sole or additional security for an Investment Property Loan, that is either standalone or combined with a Home Loan or Equity Access Loan, the LVR will not be restricted to 80% under this IPL maximum LVR policy change.
    Note: There is no change to our maximum LVR policies for Owner occupied Home Loan products.

    Effective immediately, the following restrictions will apply to our Investment Property Loan (IPL) policies for both new Loan Originations and Loan Increases (Top-Ups):

    [​IMG]
     
    tobe, 9th Jul, 2015
    #57
  18. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    CBA it doesn't have to be crossed.
     
    Jess Peletier, 9th Jul, 2015
    #58
  19. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    I dont believe Westpac needs to be crossed either?

    Email extract from BDM received this am;


    The simplest way to look at it is: When using an owner occupied property as security (solely or additional) for an Investment Property Loan (standalone or combo), the LVR will not be restricted to 80% under this IPL maximum LVR policy change.


    Product/s selected

    Security occupancy

    LVR Policy Applicable

    One or more Investment Property Loan (IPL) products as listed below(either standalone or combined with anOwner Occupied Home Loan orEquity Access Loan)

    At least one security is Owner Occupied

    Normal maximum LVR policy applies (ie not restricted to max 80%)

    All security is Non-owner occupied

    Max 80%
     
    Colin Rice, 9th Jul, 2015
    #59
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  20. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    I asked my BDM yesterday and he said it did - he could be wrong, but that's what I'm going on. I'll ring credit tomorrow when they're open again and get a second opinion.

    My interpretation is the word 'security' - I'm assuming it has to be actual security for the investment loan, not just security WBC holds generally.
     
    Jess Peletier, 9th Jul, 2015
    #60
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