Major Changes in the Loan Marketplace

The finance marketplace is constantly changing with lender's conditions changing on an almost daily basis.  Summarised below is some of the recent changes.  We have access to the major bank and non-bank lenders and can advise you on which products have the best conditions to suit your needs.

 

Time Frames Increase

The time taken before loan applications are assessed and approved by many lenders has increased significantly over recent months.  With some lenders it can be 5 weeks before an application is looked at whereas other lenders can deliver approvals in just a few days.  If speed is important to you, you need to know which lenders are delivering the quickest approvals.  

 

Lending Limits Reduced (Loan to Value ratio)

Most of the banks have reduced their lending limit to 90% of the property value.  However there are still 95% LVR options available.

 

Non-genuine Savings Restrictions

Most banks have recently removed or greatly restricted their non-genuine savings option from their loan products.  This means that borrowers need to show proof of savings and cannot rely on gifts and the FHOG alone.  Each lender’s conditions varies so it’s important to choose the lender which suits your situation.

  

LoDoc Loans Tightened

Lending conditions for most LoDoc loans have been tightened often requiring BAS returns and bank statements as additional supporting information.  Some lenders have also restricted refinancing LoDoc loans. However there are still some genuine LoDoc loans at good rates which require only a self-certification of income form. 

 

“Cash out” Choices Limited

Many lenders have restricted their “cash-out” policies making it more difficult for borrowers to refinance or increase their loans to obtain cash funds.  It is important to look at the credit policy of the lender you are applying for to see what are their cash out conditions.