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  • Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Hi

    Over the past week or so I have noticed a general easing of finance requirements. There are new loans being advertised, higher LVRs, more no conforming loans, low docs and No doc loans.

    ANZ have also announced they are increasing their max LVR to 95%, from 90% – with many conditions. ANZ have said:
    "In 2009, ANZ tightened lending standards in response to the softening in the economic environment because as a responsible lender, we did not want to put customers in a situation where they were overextended. As the economic outlook has improved and customers continue to manage repayments well overall, we are now in a position to moderate these standards for existing mortgage customers with good credit history."

    Finance is still much harder to qualify for than it was 2+ years ago, but this is a good sign that things are improving.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of SashSash
    Member
    @sash
    Join Date: 2010
    Post Count: 91

    Thats good to hear. But do you think continuing interest rate rises will turn people away? Or do you think increasing LVR's to 95% will balance this out?

    Thanks

    Want it. Own it. Enjoy it. Achieve it.

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371

    Higher rates will make servicing a bit harder. Someone at ANZ is not that smart, rates and petrol have been cheap for 2 years. Unless you lost your job or were self employed the financial crisis has made life easier via lower repayments, less interest paid and a tank of petrol costing less.

    As rates increase, consumption grows and petrol prices increase – mortgage stress will kick in.

    Profile photo of WhatIfWeFinanceWhatIfWeFinance
    Member
    @whatifwefinance
    Join Date: 2009
    Post Count: 58

    Question is will the property market slow down and is the RBA trying to break the property bubble? RBA are no record saying they do not like price bubbles?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Terry agree there is a little moore appetite for debt.

    Will be interesting to see whether the Lodoc / Nodoc market disappears totally under the new Credit legislation.

    I for one certainly wont be writing any more lodoc deals from Jul 1.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Terry agree there is a little moore appetite for debt.

    Will be interesting to see whether the Lodoc / Nodoc market disappears totally under the new Credit legislation.

    I for one certainly wont be writing any more lodoc deals from Jul 1.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of number 8number 8
    Participant
    @number-8
    Join Date: 2010
    Post Count: 333

    Richard,

    May I ask why you will not write a lodoc loan from July 1? 

    http://www.birchcorp.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Under the new NCPP the emphasis lies with the introducer to ensure that all of the information is correct and that the applicant is suitable for the finance recommended.

    Recently attended a briefing held by our Aggregator and they had a lawyer from Minter Ellison there giving everyone an overview.

    Their advice was until the details of the Act could be further clarified with ASIC then lodoc loans should be avoided as there was little way in proving the applicant could afford the loan and that stating an income to meet the lending criteria could prove very dangerous and personal liable down the track.

    Like everything the proof of the pudding is in the eating and i am sure time will tell.

    Registration for your own license i see could range from between $465 – $26,500 annually.

    And I thought Financial Planning was bad.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    Do not forget if a client states they can afford a loan they need to earn the amount stated as the ATO cross checks loc doc loan stated income with what a tax payer declares their income is on their tax returns.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    ah, not really. The ATO did one audit of about 50 low doc clients years ago and nothing has been heard about this since. None of my many low doc clients have ever been audited or asked questions by the ATO about this.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    I am with Terry i think ATO so called Audits are all spruiked up to scare lodoc borrowers.

    From July 1 the emphasis however moves to Broker or Banker so ensure the loan is suitable.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of slallenslallen
    Member
    @slallen
    Join Date: 2008
    Post Count: 18

    That sounds like some welcome news, would be grateful if you could review my post under Help Needed and tell me if you think it's necessarily true though…..

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