Liberty IO rate increase

Liberty IO loan rate at 80 LVR is at a cool 5.84%.

 

Again today another 6 letters from liberty,or 6 for me.6 for Julie, the postie must be thinking What the...............

 

Really getting sick of Liberty. I understand that they are a business and not a charity organisation but it's getting to the stage that they are just payday lenders in my eyes. Fortunately for me, I still have my partner's income which can be used next year as a household income to allow me to move to one of the big 4 lenders.

 

If this rate is true I'd be moving away ASAP - especially if this is the 80% LVR rate. I wouldnt want to imagine what 90% LVR is 6.3%? LOL

 

What u is sayin....is dat..."me and my Julie"......

Ali G

 

Are you sure that is not your old rate ? do you have the investor loading, or does that loan pre date ?

As of today, I think 90LVR with Investor loading would have to be well into 6's

Any broker care to say ?

 

I know a 88LVR on IO is 5.99%.

 

Yeah, I am out by 100bp... (meaning I was thinking it was 5 before, so must be 6 something now)

5.99, so you can say it is not 6%.....*yet*.......tick tock

 

So how about you posting some claimed rates about pepper?

 

Hope they don't go the way of Home Capital Group in Canada, their business model and risk profile seems very similar.

 

I thought I PMd you ? I had 2015 paperwork handy and Liberty, Pepper and NAB were charging me the same within a few basis points each.

I was going to take a new loan to Pepper earlier this year, I recall the rate being much lower and application fees more in line with others, for a start, they do not have this investor loading, so you can work out what it is likely to be.

As of today, it would be best to ask a broker, I will see if I can PM the rate of my last loan with them when I get to it, I am not home free till Thurs.

 

Completely different. HCG in Canada gave delegation to approve loans to brokers if I remember correctly - whereas Pepper/Liberty do full assessment and verifications on their customers.

If you look at these lenders policies I think you'd find they are some of the most restrictive for anyone who is not AAA prime.

As to the general content of this thread - more rate rises as we've seen across the board with the lenders. We'll definitely be seeing the effects of the upward pressure on cost of funding/banking regs flow through the market as time goes on.

For anyone who used Liberty in the last two or so years, it's likely that unless they have had a significant increase in personal income or decrease in debts that they will not have the capacity to move elsewhere unless they shouldn't have been using Liberty to start with.

 

I think that is right, they do fully assess & they wont just take anything as security, I think they may even be getting fussier in this regard.

The 2 things that I think are most relevant with Liberty is...

1 The investor charge/loading, this is a plain money grab and gives an insight to internal thinking I believe

2 All money comes from OS, so may be more pressure in regard to what happens elsewhere.

Also, maybe a 3rd thing is, be aware *ALL* non banks may get the APRA treatment in th enot too distant future, who know what they will do to people, but a page from the bigger lenders may be a clue.

 

Nope. I prefer numbers

 

This is where I think Liberty etc have been on the front foot and putting in policies so they don't get a shock to the system if/when they fall under the control of APRA. They've been fairly active in trying to persuade borrowers to revert to P&I for cheaper interest rates etc. There's no reason to do this other than get your numbers ready for when they fall under the prevailing regulatory environment.

Not the end of the world - it just means those who want to make use of the more generous lenders need to while they still can. Money available today may not be tomorrow.

 

That would be with no investor loading ? IP ?

But yes, lower LVR gets a discount, if you add the loading & calc at P&I the results will look less favorable I think.

 

Well, that is low.

Maybe Jins and some others will move some loans across ???????