Remember when ANZ placed heavy restrictions on home loans in certain post codes surrounding the CBD? It didn’t mean a thing to Nicheliving, because we only develop in infill areas – suburbs that are within easy access of the CBD and major amenities, but avoid the hustle and bustle.
Now, the Commonwealth Bank of Australia is also making changes to its lending criteria, having implemented far more rigorous review process that requires a much larger deposit. Once again, it’s all water off a duck’s back if you want to buy with Nicheliving, but before we get ahead of ourselves, let’s take a look at the changes…
If you’re wanting to apply for a home loan at CBA, you’ll have to provide a lot more information, like potential liabilities or other financial commitments that might hinder your ability to repay their debt in the far-off future. Loan brokers will also have to submit a much more extensive summary of your personal details, loan requirements and objectives, financial information and a detailed account your monthly expenses.
The biggest consequence of all is much more expensive lenders’ mortgage insurance (LMI) that CBA will encourage its customers to take out, as without it, borrowers will have to put down a hefty 30% deposit on the back of a loan-to-value ratio drop from 80 to 70% in certain regions.
All this stems from claims that many borrowers have lied about their capacity to repay loans, resulting in heavy losses for banks and an instability in the industry.
While CBA and ANZ are tightening up, Nicheliving is resting easy, because our finance team can help with low deposit and even zero deposit home loans for eligible first home owners. We’ve also got experts who can help you put savings plans into place, consolidate your debt and provide you with ongoing advice. There’s no need to be concerned about the banks creating more hoops for you to jump through; Nicheliving can provide you with the solutions you need.