How long till APRA loosens their purse strings?

Discussion in 'Loans & Mortgage Brokers' started by Taku Ekanayake, 11th Jan, 2016.

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  1. euro73

    euro73 Well-Known Member Business Member

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    Remember they are a mortgage manager, using other lenders funding and products. They are not an actual manufacturer of their own product and funding. You'd need to enquire as to which funding line they are using to provide the "actuals" policy.

    All the banks will be ramping up their PPOR/Owner Occ offers soon enough. The APRA reporting deadline is June 30,2016 (except for AMP- who report Jan1-Dec 31) and seeing as most lenders are reporting that they are now comfortably below the 10% investor threshold they will turn their focus to sharpening the pencil a little on interest rates for investors to make sure they fill up every last decimal point of their 10% allowance. But this will have to be carefully counterbalanced by P&I business , which should mean those with sub 80% P&I deals in particular, will continue to see lots of competition to attract their business - ie the best deals in Australian lending history will be continue to be available.

    But for investors, the good news will be limited to modest interest rate sharpening. There wont be any magical removal of the servicing constraints now well established. I imagine APRA is quite happy to see this become the new norm- because its doing what they want it to do- slowly de-risking the banks I/O books
     
    Last edited: 16th Jan, 2016
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  2. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Thanks for the explanation @euro73.
    As an investor, does it really matter where they are getting there funding from?
    What could be some of the implications?
     
  3. luckystar

    luckystar Well-Known Member

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    I'm in the same boat as you with suncorp but why don't you just refinance? If I moved over now to another lender I can access another 300k
     
  4. euro73

    euro73 Well-Known Member Business Member

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    No issues...just making sure everyone understands that Mortgage Mart are a manager, not a funder. As are Homeloans Ltd, for example - who get their funding from Pepper, Resimac and Macquarie.... and there are several other Mortgage Managers as well, sourcing their funds from a small number of funders.

    The only thing to be aware of is that if you were to exhaust your exposure with a particular funder - lets say Pepper for example , it wouldn't matter whether you'd done it by applying through Pepper themselves or through one or more of their mortgage managers. Once you reach your limit, you reach your limit.

    Does anyone know who Mortgage Mart is being funded by on their product where "actuals" are being assessed for servicing?
     
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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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  6. euro73

    euro73 Well-Known Member Business Member

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    As in Columbus? When did Origin re-enter?
     
  7. wombat777

    wombat777 Well-Known Member

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    50% of my PPOR loan is fixed. That expires in a few months and reverts to variable. Once that occurs I can look at refinancing.
     
  8. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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