Loan Servicing: Many cannot Qualify for what they have

I was building up a buffer to help with this, and have been paying extra off the PPoR, too. It's just frustrating to know that now, rather than paying down our non-deductible debt faster, we have to divert the funds into the IP - a waste of 'extra money'.

 

In a sense it's not a wast of money as you are paying down debt and that is something that people might have to come to terms with ....

 

Mine come off in 2020-21. So the hit isn't all at once, I'm upping my IO repayments to P&I amounts to understand impact on bottom line. I'm not adverse to selling so if they don't stand up to P&I rates now, they're in the sell pipeline (I understand that rents may go up between now and then, but they may not either - can't factor this in as a certainty). Can move funds over to other investment streams.

Agree with @See Change - paying off the principal.

 

I like this idea of stress testng. Hopefully by that time, things might relax a bit and go your way

 

Interest to hear if you're still able to continue to access funds and if so which lenders?

 

It is for this reason that we've sold a couple more than we really needed in order to retire. Plenty of income coming in, about half of the debt is now fully offset & the LVR very low too. There's a few in the portfolio that should have reverted to P&I at the beginning of the year....and they didn't....I'm not sure why, buy I'm not going to mention it to the bank. It's not that big a deal though, as the amounts are tiny really, so it wont really affect us when/if the bank realises.

 

yes parts of WBC group... and some smaller lender like credit unions...lot harder now. NAB is looking to see if i service with them....they assess rate of 6.89 seems to be lower.

 

why is that funny.....would luv to hear it?

just because some brokers are lazy it does not mean you cant get a loan.

i hane another 1.2m to finance......perhaps i should become a mortgage broker given how many ordinary ones there are...

 

It's funny because NABs assessment rate is most certainly not 6.89%.

But what would a lazy broker know.

 

@sash aside from quoting the wrong assessment rate, you're welcome to become a broker and see what sort of double standards lazy brokers have to deal with. Your own comment, "some parts of the WBC group", is evidence that there's elements within Westpac to whom responsible lending laws don't seem to apply.

 

Really...who told you that?

Did you know that NAB has stayed in the cap for now several months?

When was the last time you checked..what is really funny with the banks ...is that the BD people the brokers deal with have sometimes no clue!

Jess...Peter....I am not surprised by these responses...the fact I am contunuing to access funds is a testament.

I figure...that you guys can help the newbies and the less experienced.....

You guys should be thankful that this site offers easy pickings....if you don't want to get shot down desist...now....

The conflicts of interests I see ...also does not touch the tip of the Iceberg either.....

 

It's testament to the importance the lenders place on you as HNW client.
Normal people do not have access to the same lending as you....gosh I'm having dejavu.... pretty certain we've done this conversation before.

 

what areas would you be looking in for cash cows? apart from regionals, units, or apartments? would you think its a good idea to hold off buying something for the minute? or is it a good idea to buy still if you are eligible for a loan

 

Ole sayin'.....you think you are soaring with Eagles when you are actually scratching with turkeys.......there is a message in there somewhere.....

So lets zip it for now...I'll let you know when I get my loan....

 

Sash, if by Westpac group you mean Rams I'm hearing they are about to fall into line with westpac and st George for servicing existing debts ie on a P&I basis for all existing loans so if that is where you were planning to go you'd better hurry..

 

True - but I'd be happier paying off the non-deductible debt first.