Quick post here to share how interesting the lending environment is at the moment….
I am doing a loan for a client and part of that is looking at servicing across a range of banks. The deal is pretty straight forward:
- Single male applicant on $… per year. More than 2 years in current role. $… in overtime regularly
- Client is purchasing with good size deposit, LVR under 75%
- After a low rate, prefers fixed
The image above shows the difference in affordability…. No difference in living expenses (all those banks use HEM), no difference in what income is accepted… Very little difference in rate so very little difference in repayments….
Purely based on bank policy…
$100k difference. That is 25%! On a straight forward deal…
….. I’m thinking we will see a bit more fine tuning in servicing calculations from the banks for a while ……
…..Find out what we can do for you….