The borrowing capacity screws are about to get turned AGAIN.

Thanks @Redom

Just spoke to one of your guys on the phone,
No BS, Sharp and up to the point
But then one doesn't expect anything less from your team.

 

Thanks for the feedback @TheSackedWiggle, appreciate the kind words. Curtis is bright kid, made me look like a chump while we were Treasury grads (and still does most days in our office).

 

all good.

 

exactly, often ppl are already in a bit trouble when they can only make mininum repayments on a continues basis. let alone a mortgage. part of the reasons why it is more difficult for them to get a loan from banks ( when these documents are presented to banks).

 

I used to have one of those exclusive Black Credit Cards with all the shiny things on. Massive credit card limit. Free travel insurance, heaps of points. They even offered a concierge. Yes, a concierge. Can you believe it. It even had ‘Private Banking’ written on it. When I was dating, I used to throw it over the table to pay the bill, worked a treat, was always noticed (that was the idea). Thanks to the APRA police, it all had to go. Back to a $1,000 card limit now. Minimum limit on old card was $100k, so $1k was not permissable. Card cancelled and new card issued. The card they gave me is not Black, Silver, or Gold. Just this crappy white colour. Does not even look like a credit card, looks like a debit card. Reminds me of the card the bank gave me when I was a student and they approved me with a $500 limit. When I hand it over, people look at you funny, and think, hey, this person must be on social security. Using it makes me feel like a complete loser. The things you do to keep onside with the APRA police.

 

If you are no longer dating then this shouldn't be an issue?

 

That is true Terry. But my wife likes to go to these trendy shops, and when I pay, they look at me differently with my crappy credit card. I guess in life, you just have to move on.

 

This has cracked me up Sounds like even my flybuys card has more pimp than your CC.

 

Well, Jess, if you want to talk about flybuys. I can tell you a nice little story. A friend of mine used to have his own private jet. He used to tell everyone about it. When he went to a supermarket, and the person at the check out said, ‘Do you have a flybuys card’, he would say, why do I need a flybuys card, when I have my own private jet. How arrogant! I should say, I am not sure why he went shopping himself if he could afford a private jet. Anyway, the APRA police got to him as well. I guess there is some justice in the world. Bank did an audit and he was caught out by that HEM thingo. Yes, had not declared full opex on the jet. Killed his servicability. So, he put the jet up sale. He took it badly. You think being homeless is bad, try being planeless.

 

I've been planeless for quite some time - it hurts. Kinda getting used to now, TBH.

On the upside, I get more rewards from my flybuys card than I get from my Diamond Awards credit card so maybe you should get one? It'll impress any budget-minded girlfriends, that's for sure

 

Have been speaking with curtis today aswell. Nothing but nice things to say about him.

 

I often try to use my D/L. I reckon the points I've accumulated should cover at least a few cups of coffee.

 

We all sit here all concerned about what they are doing to us, and I am not saying that is not right......but.....

I see them meddling a lot, kinda like killing the goose that laid the golden eggs, of which many of these people sit on !

The problem these days, along with many social things and politics, is it only takes a noisy minority to change some things, or what seems popular is what the pollies go with, trends rather than well thought out goals.

 

That is a terrible story.

I really feel for you. What next ? forced to use your own money and no swooning or swindling gold diggers....whats the world coming too...sigh...and lol

 

Almost all of them, except for the tiny limits offer this service now, don't they? Pretty much every kind I was looking at, and the one I currently have ($6k limit) has this feature. Don't think I'll ever use it though. Also comes with free travel insurance etc..

That's why you need to get with technology. Google Pay on your phone - no one will know the difference.
Or choose a bank that allows you to personalise the card. Make it black and have the words "Billionaire's Club" or something if that's what makes you feel of worth in life.

We love Flybuys! It's actually pretty good. We get $800+ per year out of it.
Today, there's a special to get $69 worth of points, and another $100 by Christmas (for normal, everyday shopping NEEDS).
Will take me a year on the CC to get even $100.

 

We only ever had a ccard with a 4k limit to get the travel insurance which on the old cba gold cards was actually pretty good. We travel a lot and saved us quite a few dollars.

Recently the CBA ditched the gold card and upgraded us to platinum (still with the 4k limit) but they have also changed the insurance...it's not quite as good now.

We want to buy property number two next year so this new assessment might be the final straw. That $3-400 per month servicability hit will make a difference for us at the bottom of the food chain.

Oh, and clearly we'll have to ditch the leer jet too....sigh!

 

I came across the following link (not directly related to CC but I assume all.if us do use CC for household ecpenses)
Why lenders say 'no' to half of property buyers and how to get them to say 'yes'

So does it mean that I should withdraw cash now and then and use that instead of putting every little thing on CC to keep cap on my expenses before I apply for pre approval??

 

On a $4k card the impact will be minimal - no need for you to worry.

The very first sentence/headline in that article is pure rubbish - definitely not half. In fact, while it's a lot more work to get an application ready, once it's done the approval rate hasn't really changed in my business. But that may be because we don't submit loans we don't think will be approved.

In terms of spending, I don't think trying to hide what you spend is the answer - actually having reasonable expenses is a much better option If banks see cash withdrawals they'll ask about them.

I use pocket book for my budget - the main things I keep an eye on are groceries, alcohol, eating out and general shopping. Everything else is fairly fixed, and if I keep those categories in check I can show my average expenses for my family is pretty steady around $6k/mth, ex mortgage payments. And has been for ages. That included everything, so if need be we could tighten up - for eg, I could colour my own hair (Nooo!) but if push came to shove that's what we'd do.

The problem is that the lenders are not considering the fact that people can tighten up if need be. They'll look at my $6k/mth and won't consider that we could live on probably quite a lot cheaper if we needed too - no eating out, no new clothes/plants/random things we like but don't need, ride bikes instead of running 2 cars and so on.

 

We love flybuys too - we're such massive geeks James and I both have one, and use who's ever has the best offers - we seem to get close to $500/term between us, on top of anything we get from our CC reward points. I've just started online shopping with Coles too - I reckon we save at least $50/wk doing that, plus I loathe grocery shopping so it's a massive win in that regard as well.