APRA created drought causing Non banks to run out of funds ?

Discussion in 'Loans & Mortgage Brokers' started by Rolf Latham, 24th Aug, 2015.

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  1. Mick C

    Mick C Well-Known Member

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    1. PPOR = Auto good rate.

    2. Pretty sure Suncorp is pushing P/I ...rather than I/O.....and trust me you want I/o

    3. if you can service with suncorp you can service with EVERYONE!!!! so you must have a good income or low debt :)
     
    Mick C, 27th Aug, 2015
    #41
  2. Corey Batt

    Corey Batt Well-Known Member

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    Adelaide Bank changes

    Adelaide Bank is introducing changes to its investor offerings from 1 September 2015.

    • Variable interest rates for new and existing investor customers will increase by 0.20% across our standard pricing structures. Note: the current special variable campaign offering will cease for investment lending only, therefore the increase to new business rates will be in addition to the application of 0.20% previously discounted from the standard rates.
    • Different fixed rates for investor and owner occupiers will be introduced, with higher fixed rates for investors
    Maximum investor LVR for metropolitan Sydney will be reduced to 80% inclusive of any LMI (if required)

    A bit late, considering how much business they swallowed up being one of the last bastions of actual repayment servicing for a while.
     
    Corey Batt, 27th Aug, 2015
    #42
  3. Coota9

    Coota9 Well-Known Member

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    Seems these 2nd/3rd tier lenders have been pretty strategic in how they have gone about increasing their investors loans than revising their offer to be in line with the majors..
     
    Coota9, 27th Aug, 2015
    #43
  4. Adam Hindmarch

    Adam Hindmarch New Member

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    Lots of comments on her about using Firstmac but unfortunately when I was broking (and in my experience with brokers I still partner with now) there always seems to be a valuation issue - in South Australia anyway - which makes them terrible to deal with.
     
    Adam Hindmarch, 27th Aug, 2015
    #44
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Adelaid Bank has also just made an announcement of a rate increase for investor loans 0.20%.
     
    Terry_w, 27th Aug, 2015
    #45
  6. DaveM

    DaveM Well-Known Member

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    DaveM, 27th Aug, 2015
    #46
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 27th Aug, 2015
    #47
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  8. euro73

    euro73 Well-Known Member Business Member

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    The brokers you partner with may need to go back to Firstmac class 101,where they would learn that they can actually select their valuer of choice from Firstmac. In other words, it couldn't be any easier to avoid valuation issues than by using Firstmac. :) With many lenders, valuations are like playing Russian Roulette. Firstmac's valuer panel is extensive so being able to cherry pick from it reduces the randomness of the outcome quite a bit
     
    euro73, 27th Aug, 2015
    #48
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  9. Corey Batt

    Corey Batt Well-Known Member

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    I'd suggest it's more of an issue of the product being shilled, than any specific reason Firstmac would have issues with valuations.
     
    Corey Batt, 27th Aug, 2015
    #49
  10. Waterboy

    Waterboy Well-Known Member

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    They only have very limited funding sources. For one, they are not deposit taking institutions. They have to raise money through the structured finance markets (securitization).

    Don't expect they can take over the market share of traditional lenders, despite the current APRA action. And they are regulated by ASIC which have been active recently reviewing the credit files of borrowers.
     
    Waterboy, 29th Aug, 2015
    #50
  11. sash

    sash Well-Known Member

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    I managed to squeeze $1.5m out of them....

     
    sash, 29th Aug, 2015
    #51
  12. sash

    sash Well-Known Member

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    Also....they are a not go zone if you have more than $3m in borrowings....

     
    sash, 29th Aug, 2015
    #52
  13. Corey Batt

    Corey Batt Well-Known Member

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    Feel free to elaborate, or too busy coming up with a pseudo knowledge on investment finance?
     
    Corey Batt, 29th Aug, 2015
    #53
  14. sash

    sash Well-Known Member

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    Well that was the BS excuse they used with me.....I have now pretty much discounted all first and second tier banks. The reach of APRA is far reaching...
     
    sash, 29th Aug, 2015
    #54
  15. Corey Batt

    Corey Batt Well-Known Member

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    Ah - they've certainly been telling you fibs then. Max $5mil limit per loan, No hard caps on aggregate hard borrowings. That's one of the issues with going direct to bank - you replace a broker with a banker who can have nfi.
     
    Corey Batt, 29th Aug, 2015
    #55
  16. sash

    sash Well-Known Member

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    Maybe....but maybe they did not want exposure to such a large portfolio...in anycase I have another $1m-$3m now and can still do it with 10% depsoit plus LMI.
     
    sash, 29th Aug, 2015
    #56
  17. clint05

    clint05 Well-Known Member

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    LMI is deductible? How did I not know this... I was told only deductible from capital gain not rental income...
     
    clint05, 29th Aug, 2015
    #57
  18. Azazel

    Azazel Well-Known Member

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    Azazel, 29th Aug, 2015
    #58
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  19. Waterboy

    Waterboy Well-Known Member

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    Last edited: 29th Aug, 2015
    Waterboy, 29th Aug, 2015
    #59
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  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    LMI is a borrowing expense and is deductible over a 5 year period or the life of the loan. If you didn't claim it then you could claim it against CGT when the property is sold - but best to get more bang for your buck and get it upfront and avoid the 50% discount and inflation eating away the benefits.

    best to avoid looking at secondary sources and look straight at legislation:
    s 25-25 ITAA97 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s25.25.html
     
    Terry_w, 29th Aug, 2015
    #60
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