Servicing with CBA

Discussion in 'Property Finance' started by Harry30, 26th Nov, 2018.

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  1. Harry30

    Harry30 Well-Known Member

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    When assessing servicing, I understand the CBA treats existing debts (assume IP loans) with other banks based on actual repayments x 1.2 (ie. 20% uplift)


    What about existing debts (assume IP loans) with the CBA? Are they treated more ‘favourably’ from a servicing perspective, or is it still actual repayments x 1.2?
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    It's not 'actual' repayments. It's the repayments over the remaining amatorisation period and I think it's 30%. If you're currently paying interest only, then likely they'll assess it on a P&I basis then add 30%.

    For existing (and new) CBA debts, they assess at 7.25% P&I over the amatorisation period - similar to everyone else.

    This means that for some circumstances the CBA does have a better servicing calculator, but for other circumstances it isn't. The CBA tends to be better than most when there's other debts that were P&I right from the start.
     
  3. Harry30

    Harry30 Well-Known Member

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    Thanks Peter. Very helpful.