Hi
There are some changes happening in the world of Low Doc loans. ING has just changed their loan from a max of 76% LVR without mortgage insurance (LMI) to a max of 60% LVR without LMI. Suncorp are also doing something similar.
This will make it much harder to qualify for multiple loans as both LMI companies impose a maximium exposure level per client (of $800,000 and $750,000).
Apparently the change is due to new APRA requirements.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The LMI issue really sucks!!!
I’m maxed out with both of them, and it makes life a great deal more difficult.Keep smiling
Felicity
Terry,
This kind of re-regulation doesn’t surprise me. I guess Banks are now doing their own level of micro-economic reform to dampen spending and lower their own risk levels. 105% loans will be the next to go, I reckon. At least this reigning in will perhaps keep a lid on IR’s.
LMI is a waste of money in a damper market. It might have been a strategy when the market was rising, but now it’s just dead money and could lead to negative equity.
I wonder if it’s going to be back to the 60’s and 70’s for banks, whereby soon we will have to beg them for money.
kay henry
kay if you have the opportunity please find out which areas of lending have the highest level of ‘loan conduct’ and which have the least level of ‘loan conduct’.
ie. ‘low doc’ <80%
or fully verified 70 – 97%i think you will need to rethink. any future changes are due to apra and not due to funders re so called “micro economic reform”.
cheers
Brendan Heagney
Mortgage Broker
07 3240 4815
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