Rate cuts passed on by different lenders

Because of Liberty???

 

Liberty have fixed rate options that you could consider which may give you temporary piece of mind if you are concerned about a rate hike.

They are one of the last lenders you would use if you could not service anywhere else?

I did a land loan for an OO with them for a client as it didnt fit any where else servicing wise and they are 2 years away from construction.

They have multiple properties but will sell current PPOR to deleverage and free up equity and serviceability so will go elswhere for that, not to mention Liberty dont do construction.

Careful fwd planning is paramount.

 

Liberty know very well where their niche is for investors at the moment. They know that if investors are using them, the investor likely can't service elsewhere. This means if they want to increase their rates, many of their borrowers won't have a viable alternative that they can qualify for.

They are being reasonably competitive at the moment. Their rates and fees aren't particularly cheap, but they're not excessive either. As a business they're one of the more stable lenders in the 'non-conforming' space, I don't think they're about to get into any financial trouble.

Overall I rate them as a reasonable option if you need finance and servicing is a problem. Due to the lack of alternatives in this space however, I do rate them as a moderate risk to borrowers. I don't think they'll blatantly gouge their customers, but they know that they can increase rates to increase their own profitability if they have to.

 

Duly noted and its good to be aware for the medium term. I should have contingency plans apart from selling so....if Liberty is the current lender of choice for investors at the edge of their serviceability limits, whose ranked 2 and 3 in terms of serviceability calculators (that are mainstream lenders)?

 

They are all crooks, been here done this before, on the RBA's way down, they do not give full cuts, but remember to watch on the way up, they will be full !

I really wish the RBA would not cut any more, it is not working, and will continue to not work, it baffles me that when you try something and it fails, once, twice, maybe three times, that it cannot be seen that it will not work.

Let's face it, we do not operate in a world with one set of rules, wait till the power shifts from west to east fully.

 

Yeah, what's the deal with that?
Kind've the same as petrol.

 

Katchink....another 6-7k in savings for the FY.....

 

Same deal for any big corporate really, of course all of them act totally independent and in consumers interests

@sash yeah, cashink for now....... but later they will take a mallet to us & I can't see much happening with rents unless we all start doing things the fullylucky way.

 

As a very general and broad rule:
1. Liberty
2. NAB
3. CBA
So many exceptions though. Get specific advice.

 

Thanks Peter - maxed out of 2. and 3. And I bank with them already too, so hmm, Liberty's it for now unfortunately.

 

Advantedge are slightly more generous than NAB, so it's possible you may be okay there.

It's not an issue necessarily, but for eg, consider what happens when your IO periods run out and you can't extend or refinance due to servicing issues. You're stuck paying P&I with nowhere to go. This is the sort of thing an investment focused broker will help you negotiate - with portfolios to consider there's more to it than just getting the next loan.

Now that you have a couple with Liberty, just consider those things and make a bit of a contingency plan - this might be selling a property down the track, paying down debt, splitting a block and selling it etc etc. It's unlikely to be an imminent disaster so you have time to work it out - sorry if I alarmed you!

 

Nope, sick of tenants.

 

Well I had the choice of not buying vs buying, but with Liberty. I chose to buy

 

Pepper

 

Thank goodness it’s mere co-incidence that the first rate cut AFTER the election the big banks revert to type in passing on only part of the cut. Compare this to May when they all fell over themselves to play nicely (well three of them did), what with the prospect of royal commissions still in play.

A uninformed cynic would probably dare to suggest the big four operate an illicit cartel where their strategists meet star-chamber style to roster the order in which they each announce their independent price movements – with the pricing rates scripted more tightly than an episode of MKR.

But a relief to know that type of thing wouldn’t happen in this country either for banking or fuel retail.

 

Bank policy needs to be considered in relation to your situation as well as servicing.

One example of many would be 1 year self employed so limited to CBA on the list above.

Servicing is only one important factor of several before you know what you can and cant do with a particular lender.

 

Waiting for the mallet....the harder the swing the better......agree rents are slow......can't wait for 7% rates again...

 

Any of the big banks announced discounts to their fixed rates yet?

Whats the cheapest <80% lvr, IO 3 year and 5 year fixed rate out there at the moment for IP's?

 

[QUOTE="Jess Peletier, post: 258114, member: 62"

It's not an issue necessarily, but for eg, consider what happens when your IO periods run out and you can't extend or refinance due to servicing issues. You're stuck paying P&I with nowhere to go.[/QUOTE]

I have one ANZ Io loan just roll over to P & I,with exactly the scenario above,makes a difference finding an extrs $300 PM to cover it,I was told it was because of the insurer, being a 90% loan.