Just a quick note for investors looking at borrowing with a base LVR of greater than 90% using CBA. In this case CBA will no longer allow negative gearing to be used in the assessment of your affordability / serviceability for investment loans. Eg, base lvr is 89% and end lvr is 91% (base plus lmi) you may use NG – if base is 91% you may not. Lots of changes at the moment – like one of the lenders said yesterday, “we are returning to the investment lending conditions of the late 90’s” Give your brokers a call if you have a deal in mind.
On Friday St George will be announcing its changes.
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Yes it’s been removed for a few weeks now. Not a huge issue considering CBA above 90% was never really a common investor space.
Westpac and St Georges reduction in investment LVR’s to 80% max is a big one though.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Agreed – not too concern with CBA and deals above 90% – it’s not a space I like to operate in.
Biggest concern is the lenders who previously too OFI debt at actuals now using an assessment rate. Seeing AMP, MAC, Adelaide, etc turn to a servicing calculator similar to the likes of ANZ isn’t good for investors.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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