Big 4 lenders piloting new programs for moar 5% down/lending into standard resi, up to $8m value, ze

Saw this tweet from Pete Wargent.

https://twitter.com/PeteWargent/status/1781937260977676522?t=RrCkYPC6prOqNiYY2YVw3g&s=09


Anyone seeing this? Is this something that's becoming available now? Seems crazy.

 

Yep, a recent pilot. They will have done their research and it is based on very blue chip suburbs. Also aimed at those with very strong and growing incomes. Not going to be available for Bob and Mary who own the local chip shop. Effectively just an extension of their existing LMI waiver policy but not limiting it by employment sector alone.

 

$2 million MINIMUM loan?

 

I worked with a guy who was similar. Bragged about how little tax he paid which always annoyed me. Anyway he went to an auction and won a property with no pre-approval. Had to use. Avery dodgy non bank to settle so whole rates were about 3% he was on about 8. Did make me laugh!

 

Blue bank
Awesome policy for big incomes
(500k min really)

not available for company loans

mainly big sydney brokers have access at the moment who write this kind of business.

 

Sorry, what's blue bank?

 

Not yellow bank
Not red bank
Not black & red bank

 

A bank with a big blue logo that begins with A...

 

Now it gives pretty much all high income earners the benefit of LMI waiver and not just professionals in certain industry.

How many people make a min $500k in Australia is another question.

But still good and a niche market.

 

ANZ

 

Thanks, I didn't want to assume.

 

Sorry I was thinking of bluebet.

 

House hold income?

 

Do they offer much better rates than the standard?

 

No it’s not cheaper rate wise, rates aren’t the best but that’s not really the reason to use this. lmi saving is huge (and accessible, for 5-8m most require 30% deposits!)

 

The Australian has published couple of articles (behind paywall) on this with a bit more detail and a list of 145 eligible post codes in Sydney, Melbourne, Brisbane and Perth (most of these are in Sydney as you would expect). According to the article, interest rate is 'in line with the broader market' and 35bps is added for the 'customised nature of the deals'.