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Westpac returns investor LVR to 90%.

Discussion in 'Property Finance' started by twobobsworth, 24th May, 2016.

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  1. twobobsworth

    twobobsworth Well-Known Member

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  2. C-mac

    C-mac Well-Known Member

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  3. wylie

    wylie Moderator Staff Member

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    That is great. Any idea if NAB will follow suit?
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    And the finance world is slowly but surely getting back to normal. Didn't even take that long. Gotta love it.
     
  5. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    NAB never changed. They've always been going to 90% LVR for investment purposes.
     
  6. Biz

    Biz Well-Known Member

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    The good times are back!
     
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  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    NAB never went down to 80% LVR

    Agree that this is a good sign for westpac group.

    Cheers

    Jamie
     
  8. hash_investor

    hash_investor Well-Known Member

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    I bet others will follow.
    I think they are trying to balance after they cracked down on foriegn investors...
     
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  9. nothingman

    nothingman Active Member

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    if you borrow 90% do you still need to pay LMI? or does the LMI threshold also become 90%
     
  10. Jerry O

    Jerry O Well-Known Member Premium Member

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    LMI premium would still be payable at 80% and up. That would be the insurers decision to make and not the lenders i would assume.
     
  11. Jason Tyrrell

    Jason Tyrrell Well-Known Member

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    LMI policy generally remains unchanged when specific lenders increase or decrease their maximum LVR policy. Essentially unrelated.
     
  12. Redom

    Redom Mortgage Broker Business Member

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    This reverses the 'deposits' side of the equation from Westpac - something that plenty of lenders barely adjusted (or did so marginally). In terms of impact on the market - these changes would have had a really minor impact, as there were still major competitors who were in this space (ANZ, CBA and NAB).

    The real game changer for investors was the changes to serviceability - we haven't seen much of a wind back here (very very marginal). In fact, there was been consistent and concerted effort from the regulators/banks to reinforce the prudent standards publically. Its very clear that much of these changes will continue for the foreseeable future.
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    WBC servicing calc is so junk that barely any investors will be able to afford to use WBC anyways, regardless of LVR.

    Maybe for their first IP but that's about it.
     
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  14. hash_investor

    hash_investor Well-Known Member

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    do their subsidiaries use the same cal or they have their own?
     
  15. Redom

    Redom Mortgage Broker Business Member

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    Have their own.
     
  16. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    No, the St George group (StG, BoM, BoA) are significantly better in almost all respects. Servicing is better, products tend to be more cost effective.

    The Westpac 'Rocket loan' has always been one of the best products on the market in terms of features, but it's rare that anyone would actually need those features in a manner that makes the rest of it worthwhile.
     
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  17. Jerry O

    Jerry O Well-Known Member Premium Member

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    each would have their own calc and different set of policies from their main company.
     
  18. Watson1

    Watson1 Well-Known Member

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    BOM/STG are in my opinion the most generous lender for servicing their own investment debt.

    The servicing between WBC and BOM/STG is substantially different due to the fact that WBC do not use negative gearing and the way STG apply negative gearing is very generous compared to other lenders.

    My gut feel is that WBC group will look at doing something with Interest Only loans ie, load up interest only loans for existing customers like NAB. When I think of my clients with STG/BOM, the majority of them have locked in 15 year interest only for their owner occupied and investment loans.

    Surely the fact they have the largest investment book coupled with the fact they use to provide 15 year interest only without amortising the loan term for serviceability their book would be full of interest only loans.
     
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  19. Luke T

    Luke T Well-Known Member

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    Sounds like they might be trying to be generous !-No LMI then ??!!!
     
  20. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    WBC 90 % lend for IPs has its place and im glad its back

    ta

    rolf