This article popped up in my Google alerts which I haven't checked for a while! I searched the forum but couldn't locate any other threads on this article, hopefully I haven't duplicated.
There was a mention in another thread suggesting that people would make a switch with the differential coming into affect. Interesting to read that St. George is providing data to APRA, and also under some circumstances requesting notices of assessment as a determination that customers are not receiving tax deductions against property investments.
Quote:
Written by: James Mitchell Date: September 08, 2015
St.George Bank has introduced new processes to cope with an influx of investors switching to an owner-occupied loan following recent price changes.
Speaking at the St.George Bank Flame Forum 2015 in Melbourne yesterday, the bank's head of credit, Rob Love, revealed that St.George has seen an increasing number of customers looking to reclassify their home loan since it introduced differentiated pricing.
Mr Love said the bank is currently measuring the number of customers who are switching their loans from investor to owner-occupied separately to its investor loan growth. He added that St.George is providing this information to APRA...
“If necessary, if we are challenged, we might seek some evidence through notices of assessment to make sure they are not receiving any tax benefits or negative gearing benefits from the property being used," he said. Mr Love stressed the importance of determining whether a customer is receiving negative gearing benefits from the property.
This article popped up in my Google alerts which I haven't checked for a while! I searched the forum but couldn't locate any other threads on this article, hopefully I haven't duplicated.
There was a mention in another thread suggesting that people would make a switch with the differential coming into affect. Interesting to read that St. George is providing data to APRA, and also under some circumstances requesting notices of assessment as a determination that customers are not receiving tax deductions against property investments.
The article is correct. This is happening at all banks. I arranged a change for one of my CBA clients and it took the bank 1 month to process what is a simple change. They have been swamped by requests.
In previous times it didn't matter, so if a home owner wanted to upgrade it didn't matter whether the loan was processed as an investment loan or a home loan. The applicant then sold or rented his existing home and moved into the new home and no one bothered to reclassify the borrowing because it didn't matter, but now it does.
The investor numbers that has APRA and the RBA are so worried are pretty rubbery. The recorded number of investor loans are likely to fall significantly now that there is a rate differential.
The article is correct. This is happening at all banks. I arranged a change for one of my CBA clients and it took the bank 1 month to process what is a simple change. They have been swamped by requests.
In previous times it didn't matter, so if a home owner wanted to upgrade it didn't matter whether the loan was processed as an investment loan or a home loan. The applicant then sold or rented his existing home and moved into the new home and no one bothered to reclassify the borrowing because it didn't matter, but now it does.
The investor numbers that has APRA and the RBA are so worried are pretty rubbery. The recorded number of investor loans are likely to fall significantly now that there is a rate differential.
And one little well-publicised fraud charge will move the stampede in the other direction...
The article is correct. This is happening at all banks. I arranged a change for one of my CBA clients and it took the bank 1 month to process what is a simple change. They have been swamped by requests.
So when you ebulliently announced the continuing boom yesterday on a new thread about SLA turnaround times for broker based mortgage applications getting blown out because ...
Quote:
High volumes of loan applications means high sales volumes.
... you actually had it wrong, and in fact the increased turnaround times were due to the loan processing officers having to deal not with a surging volume of new applications, but instead just loads of requests to switch loans from IP to OO status?
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
And one little well-publicised fraud charge will move the stampede in the other direction...
No
John Frum
16 Sep 2015, 07:20 PM
So when you ebulliently announced the continuing boom yesterday on a new thread about SLA turnaround times for broker based mortgage applications getting blown out because ...
... you actually had it wrong, and in fact the increased turnaround times were due to the loan processing officers having to deal not with a surging volume of new applications, but instead just loads of requests to switch loans from IP to OO status?
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
I highly doubt first line staff specialise in origination.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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