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I think people are living off credit and savings at the moment. The messaging around the interest rates is the worst thing IMO. First it was rates won't rise until 2024, then when they were pumping out 0.50% rate increases they were like we need to go hard now but there will be rate cuts the...

In the T&Cs of your mortgage the bank can sell your property if there is a negative price movement. Whether they would enforce that or not, who knows, property hasn't dropped significantly in my lifetime so we don't really have anything to go off.

Government will let the banks run with 40 year mortgages. That will be the lever. Banks still win long term.

It's been easier to get a loan in the last 12 months or so, provided your employment hasn't been affected by covid. Low interest rate environment so banks were able to drop their sensitised assessment rates from 7-7.5% to 5-5.5%. Harder to buy a house as there is no supply in the market.

As in someone has gone guarantor for you? Release that s**t if you have $350k loan against $550k property, shouldn't need it anymore at that LVR for a standard residential property

You can just get a second loan with the same bank for whatever you need for the renovations and don't touch the fixed loan. Probably need to do some negotiations with product minimums / interest rate but it would be a pretty hefty break fee otherwise I'd imagine.

Hobart would have been positively geared over the last few years. With no tourism and downturn in the numbers of international students it will get brutal down here in the next 18 months though I reckon. Overpriced now and due a correction.

Just one of those things that is different bank to bank.

I've never really checked them. I'd suggest if you have simple circumstances they are probably not far out. So if you pump in that you earn $80k a year and you are a teacher or accountant or whatever who just earns a base salary then yeah I'd say they would be around the ballpark. If you are a...

I have worked for a big 4 with the packages. The standard discount from the package relates to the size of the loan. Then in the background you can apply for better pricing. It all depends on whether the bank have met their targets for the quarter. One day someone with an $800,000 loan gets 1.5%...

Most banks go back to the standard variable rate which is about 4.5% currently after the fixed term expires. You can always pay a fee and refix to the prevalent fixed rate at the time or try to negotiate the rate with your existing lender but they won't get close to what they are offering new...

Deferring the payments is hardship. The banks can't assess them all properly at the moment because of the demand so while they are handing them out like lollies I would personally be very reluctant to take it if you are still fully employed and earning your regular income still. You might get...

I work for a bank and don't really get it either. They spend so much money on advertising to attract customers, pay BDMs to chase business from brokers, pay upfront commission to brokers on new loans & have salaried employees spend the time sifting through applications when only x% of them end...

I think most banks these days revert to the standard variable rate after the fixed period ends. That's why the comparison rates for fixed loans are higher. Banks just preying on people being lazy and not noticing or that they can't be bothered doing anything about it. Being an existing customer...

Makes stuff all difference really, especially when they are all with the same bank. A stack of unsecured credit enquiries would be more of a worry. Just say they didn't go ahead and you probably get away without further explanation. You might get asked why but I wouldn't offer extra information...

It's kind of obvious when you look at someone's credit report that they have done this. If you didn't declare the personal loan, the bank that you applied with can ring the other bank up to see if the credit enquiry proceeded, and if it did and it wasn't declared then you have just earned...

You are going to have a bad time with borrowed funds as a deposit. You can probably try window dressing it so it doesn't look like borrowed funds but not something I would recommend.

The downside risk of borrowing at 95% is the potential of ending up with negative equity in the property if the property market drops some more. 5 years ago you would just eat the LMI to get into the market as the property would go up more in 12 months than the LMI paid. Currently the market...

On a $700k property in Victoria: At 88% LMI, borrow base loan of $616,000 + capped LMI approx $10k = $626k total loan. Deposit required at 88%, $700k + costs approx $30k (using brokers - looks about right) + LMI $10k - total loan amount $626k = $114k required. To stay under maximum of 95%...

Pretty poor broker there if they can't get it done when you have been in your job for over 6 months, doubly so if you have previous experience in the industry.

Ideally you probably want a 12% + costs deposit as a minimum. That's not so much to do with lending standards but the cost of LMI. Anything over 88% + capped LMI starts to become prohibitive as far as the LMI premium goes and with the real estate market sluggish there is no rush to jump in and...

It's cheaper for the banks to pay a broker than employ someone themselves to do the job. It's basically outsourcing. Instead of paying an employee a salary, paying for training and development for employees in a high turnover industry, and paying for overheads like renting a physical office for...

You generally won't use it unless it is an exceptional situation and you only need a small fraction of it to get a deal to work but the way you would verify it is from a tax return. Most people are not declaring the income to the tax man though are they.

I had one once from a broker where there were two couples that were buying an investment property together. They both claimed to have recently built a granny flat out the back of their owner occupied properties and produced rental appraisal letters for them. They needed this to service so I'm...

I used to think mortgage brokers were the worst until I spent some time dealing with the retail channel for a couple of months. At least brokers have the excuse of dealing with 20 different banks policies and procedures and all banks will shift the goal posts on you every 5 minutes. Branch...

If you are single, no kids, median $75k gross income and no liabilities you have a borrowing capacity of $470k. If you are single, no kids, median $75k gross income and only liability a modest $100p/w car loan you have a borrowing capacity of $405k. That's an enormous difference if you are...

Financing a car destroys your borrowing capacity if looking to also borrow for a house in the future.

NAB was fee free there for a while on transaction accounts, not sure if still the case. I'm with CBA and it's fee free if you deposit $2k a month which is fine if you deposit your pay but maybe not otherwise. In the current environment you probably save more by avoiding fees then going...

Maybe he had HECS/HELP deducted from his pay and he has already paid it off.

Well I'm conservative so would be just offsetting it for a rainy day.