Third-Party
Providing an update on recent lender changes this last month and what the majority of my client base has been doing this past month.
Interest rate changes
Westpac group increased 2 and 3 year fixed rates 0.10% around 4 weeks ago + NAB 2 and 3 year fix followed 2 weeks ago + CBA put an announcement out recently saying their 2 and 3 year were going up as well, they either have increased or will soon. All 4 and 5 year fixed rates went up around 2-3 months ago. main reason for this is the 0.10% funding costs the rba and government gave the banks through covid19 which was removed in June 2021.
As general commentary: Things are changing in covid19 times especially during lockdowns in the last few months
Self employed lending is getting tougher. A lot more spot checks on bas or 6 months business or asking for accountants letters or 2021 projections at multiple lenders. Some lenders have industry exclusion lists like retail aviation and gyms etc
Some lenders are implementing debt to income ratio limits like citibank max dti is 6 now.
Some lenders have changed how they look at ability to repay a new mortgage or refinance. Ive had 3 occurrences recently where assessors have asked me to calculate the stress tested mortgage repayment. Then go into the bank statements and confirm the saving levels matches this or is greater then this. I have not had this ever asked in the past. As opposed to just calculating 5% genuine savings then that was it. It shows things are tightening up a bit.
2 main lenders have changed their offers ING and Suncorp - Majority of refinances going there at the moment.
St George - 3k rebate flat now - Still slow sla ie 3 months to refinance, Volume has eased here. 1.94% 2 year fix comp rate 3.38% improved after pricing request. Drop by 5 basis points if tis 60% lvr as well. 2.24% 2 year fix investment P&I comp rate 3.89%. Drop by 5 basis points if tis 60% lvr as well. Used to send multiple property refinances here. Now not as much.
Westpac 3k rebate flat now - Still slow sla ie 3 months to refinance. The deals i typically send here are the ones that want a close to st george rate + rebate but much quicker as st george is flooded right now. 2.19% 2 year intro rate variable deal 70% lvr 2.62% comp rate. Volume has eased here. Used to send multiple property refinances here. Now not as much.
Citibank - 3k rebate 350k to 750k and 4k rebate for 750k + loans for refinances and purchases. 6-8 days sla at the moment(Extended rebate campaign for June+ 2021) Providing 20-30 basis points off headline variable rates online through the citibank broker bdm for 350k+ balance and under 80% lvr from their quoted online rates through the citibank bdm pricing approval. This makes the majority of citibank variable rates in the top 3 best on market right now. Once you account for the refinance rebate its best on market. Has the lowest 2 year fixed rate on market for investment on P&I and IO. 2.19% comp rate 3.04% P&I and 2.39% io 2 year fix comp rate 3.32%. owner occupied 1.89% 2 year fix 2.71% comp rate. Yes Citibank is withdrawing from the Australian market in the next 1-2 years. Not sure exactly when.
CBA Are still doing under the table pricing and after escalations very competitive with the big 6 banks. Has to escalate the initial request every time to get the better rates. Much better then whats quoted online. SLA was really slow in the past ie 10-15 days but they have put on extra assessors so its down to 3-4 days as of now.
BOQ 2k investment purchase rebate started last week. Buy before end of November. Increased their 2 year fixed rates this week. Not as competitive as ing and suncorp now for refinances. Better for investment purchases sub 80% lvr.
Suncorp - 1.89% 2 year fix owner occupied comp rate 2.56% + no annual fee for life + 3k rebate for loan balances over 750k net of offset. Investment fixed rates 2yr & 3yr P&I 80% LVR @2.28%
Investment fixed rates 2yr & 3yr IO 80% LVR @2.49% comp rate 3.22%. GOLD level status with Suncorp which means i get quick sla's and service levels here.
ING 3k rebate for balance over 500k - 1.84% 2 year fix owner occ comp rate 3.73% investment 2.34% 2 year fix comp rate 4.35%
Bluestone Getting the majority of my low credit score / poor repayment history deals here due to prime product rate and no credit scoring and no comprehensive credit reporting ie they dont call your old banks to see how poor your character was there.
La trobe SMSF deals mainly
Self employed only ANZ and CBA i wont send normal full doc self employed to any other banks at the moment due to issues lenders are causing. Including self employed contractors on rolling contracts.
Low doc and no doc self employed Resimac and i have 1 other lender on a sub 3-3.50% rate with accountant sign off depending on lvr.
Pre approvals Mainly using ING / Suncorp of late due to over all rates and a quick sla.
AMP Just lowered their variable rate + placed a deal here recently due to ability to link to wrap financial planning accounts and have multiple offsets. 1.88% 2 year fix comp rate 3.08% and variable 2.29% p&I with access to redraw owner occ
Construction Im getting the majority of these done with Advantedge - white labelled nab / Suncorp / Me bank / Bankwest quick sla good rates and not causing issues on valuations and construction process.
Refinance rebates min loan size for most of the offers is 250k
ING 3k rebate - loan size over 500k
Bankwest 2k
CBA 2k
NAB 2k
BOQ 3k
Westpac 3k
Me bank 3k
St George 3k
Citibank 3k 350k loan size to 750k and 4k for balances over 750k under 80% lvr purchases and refinance
ANZ 3k
Suncorp 3k over 750k loan size + no annual fee for life saving 375 annually
Other rebates for buyers
Citibank - 3-4k purchase rebate
BOQ - 2k investment purchase rebate
Suncorp - Lifetime annual fee waiver for buying
Broker Cashback $500 for balances between 300k and 650k net of offset & $1000 cashback for balance over 700k net of offset. Broker rebate paid post settlement normally 2 months post settlement.
Types of clients suitable on a plus 3.00% rate? or havent reviewed your mortgage in 18-24 months?
We are looking for clients that are seeking a broker relationship that will be reviewing their position every 2 years to make sure its competitive to the market. Not suitable for fully offset clients.
We are also looking for long term relationships with clients, if you intend to refinance again or sell within 12 months, the banks actually claw us back on our upfront commission completely so we would be unable to help in these circumstances. I will do my best to reply to all comments.
My experience 7 years in commsec and cba on a margin lending desk and as in in house cba branch home lender. 4 years as a mortgage broker running my own company.
Small win for the business we just crossed the 50 for 50 threshold. Ie the last 50 files we submitted to lenders we got each and everyone of them approved. Sure we cant control everything in a homeloan process. But we like to think we do as many checks as we can before we submit a deal to give its best chance of success. And times during covid19 assessors are finding extra reasons to decline deals a lot more often. But to be honest we normally have around a 97-98% success rate of submission to approval. Which is pretty good considering the market.
You can book an appointment straight into my calendar - https://calendly.com/adrianplayermortgagebroker/15min
Kind Regards
Adrian Player | Director
M: 0416643638
W: www.integralloansolutions.com.au
Adrian Player is a credit representative (498364) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237).
Great insight - are Citi continuing their ppor 85% lmi waiver or strictly UBank only presently in this space, specifically for purchases (not refi)