NAB tightening up a little bit more

How will this impact on property markets? Thoughts

 

curious to know which postcodes are in A and B?

 

depends on your postcode I guess And whether you need NAB for servicing....

 

The HEM figure updates are spreading across all of the lenders - NAB is the 5th lender I've seen that I can think of which has announced this change. Naturally living expense minimum's increase year on year - so not that much of a concern.

The real interest is with the postcode changes, which shows NAB's active interest in reviewing it's risk tolerance to it's security held.

 

Slightly tricky to read the pic above showing the restricted suburbs. Another place it appears to be published is here. Inside the article there is a table with cilckable Group A and Group B tabs, and it has a scrollbar. Quite a shock to see the Docklands on the risky list Suburbs where credit risk getting worse named

 

Their updated living expenses section on their calculator is the other update a few weeks ago.

Edit: mentioned already above as per Corey's comments.

 

This is an updated list, to take effect from October 22.

 

What is the changes to the desktop val policy?

 

NAB is expanding their use of desktop valuations - which streamlines timeframes through not requiring access/inspections for a lot of deals. This is a move in the right direction for them as a lot of other lenders have transitioned into this space and it's been very effective.

 

I hear on the rumour mill that NAB (and associates entities) also expect to change from their current generous servicing on external debt to have everything serviced at 7.4%.

I understand it is likely to happen later this year and would certainly be a shake up.

Cheers


Richard

 

Combined with their atrocious implementation of living expenses, they'd go from one of the better servicing lenders to one of the worst.

If ever there was an opportunity for privately funded lenders, it's now.

 

Yep, NAB will be changing their assessment of continuing debt based on "affordability" meaning assessment rate.

 

Interesting to see Narwee and Beverly Hills made the 80% list...... I can understand Wolli Creek/Arncliffe etc (as I posted the other day) but not much development happening in Narwee (there is in the next suburb west in Riverwood), I've just had an apartment come up for rental renewal in Narwee - 10/5-7 Graham Road, Narwee NSW 2209 - Apartment For Rent - $430 at $430pw so will know if there is any rental softening there in a few weeks ...

 

I was just on a bus going along at Church St Ryde. I look down the river towards Parramatta and I see heaps of apartments at Meadowbank and Ryde. Just simply heaps, and the Ryde ones are not yet completed.... still more coming up at Gladesville too at Victoria Rd.

 

Awesome....silver lining in there somewhere.....

 

Wow that's going to be crap. CBA will be the most generous lender outside Liberty, assuming choicelend/advantage all change as well.

 

CBA and generous...nope............they get nervous when you have a lot of properties.

In my personal opinion....CBA is among the worst lenders ...they bait you to get in....but their rates and conditions are substandard in my opinion. Their services levels are atrocious...and everything is robotic...including credit approval.

No serious large investor would go down that road with them......and if you get in trouble with them they are the most ruthless in terms of repossessions.....

 

Just further evidence that debt reduction is important.

 

Another kick in the guts for investment focused brokers. I bet it feels like playing a strategic game of billiards, every shot played perfectly with the next in mind, then as you reach the black some idiot fouls you because your shirt brushes the white.