Do the new APRA conditions apply to Commercial loans?

Discussion in 'Loans & Mortgage Brokers' started by Blacky, 22nd Jul, 2015.

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  1. Blacky

    Blacky Well-Known Member

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    With all the talk about the new APRA conditions just wondering if it applies to Commercial or un-regulated loans (non-consumer)?

    Cheers

    Blacky
     
    Blacky, 22nd Jul, 2015
    #1
  2. DaveM

    DaveM Well-Known Member

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    Comm is under 80% lvr anyway so not much change
     
    DaveM, 22nd Jul, 2015
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  3. Blacky

    Blacky Well-Known Member

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    What about in regards to the servicing models?
     
    Blacky, 22nd Jul, 2015
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  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I don't think I've heard anything anywhere in regards to commercial lending and APRA comments. Commercial lending is unregulated, it may not even come under APRA's umbrella (not sure about this).

    Given the overall economic state, I would hope that the government is going to do whatever they can to promote business, and by association, commercial lending.
     
    Last edited: 22nd Jul, 2015
    Peter_Tersteeg, 22nd Jul, 2015
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  5. Redom

    Redom Mortgage Broker Business Plus Member

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    Policy mix from regulators right now will be doing what they can to promote commercial lending! :)

    Growth in commercial lending is one of the key indicators to what policymakers are trying to do and an early indicator for improved overall economic performance (reflective of business confidence).
     
    Redom, 22nd Jul, 2015
    #5
  6. Chilliblue

    Chilliblue Well-Known Member

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    None of my clients have been affected and the reason is as DaveM pointed out. Comm lending requires higher deposits to residential.
     
    Chilliblue, 22nd Jul, 2015
    #6
  7. TaylorChang

    TaylorChang Well-Known Member

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    APRA didn't touch commercial and business lending.
    DSCR still around 1.5%, assessment rate is around 7.5% depending on the sectors and business.
    I have to say commercial is totally different from home loan, it took me a long time to make a deal........ but I have to say it was a lot of more fun to do.

    However, I heard there are some talks within ANZ about tightening in property development sector in the commercial lending area.
     
    TaylorChang, 22nd Jul, 2015
    #7
  8. MTR

    MTR Well-Known Member

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    This is certainly going to change things dramatically, and I thought they would never get rid of lo doc/no doc, but it happened, now more hardship for investors.

    MTR
     
    MTR, 23rd Jul, 2015
    #8
  9. Harry Goyal

    Harry Goyal Member

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    APRA lending rules are only applicable on home loans, the focus is basically to handle the housing bubble
     
    Harry Goyal, 23rd Jul, 2015
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  10. Corey Batt

    Corey Batt Well-Known Member

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    No push in this area thankfully - which may mean that some investors may want to consider transitioning from residential lending to commercial as there portfolio grows and serviceability becomes more constrained.
     
    Corey Batt, 23rd Jul, 2015
    #10
  11. Mick C

    Mick C Well-Known Member

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    No changes to comm loans or business loans or development loans over 5+ as it be a NON NCCP loan....not regulated.

    So recently we have seen a spike in comm loans.
     
    Mick C, 23rd Jul, 2015
    #11