Well, there has been a flurry of emailed updates from the major lenders over the past 6 weeks..
Fee’s, interest rates, and credit policies have all been getting tweaked. (not twerked)
Among the changes are new Low Equity Premium fee’s, separate sets of interest rates for over 80% lending, and fee discounts that might once have been available are all but gone for the over 80% borrower.
These additional costs are adding up.
As an example, ANZ is applying a 0.5% margin on interest rates over 80%. On borrowing of $550,000 that’s an additional $2,750 p.a.
Borrow between 85% and 90% with Westpac and the Low Equity Margin is 1.15%. On borrowing of $550,000 that’s an additional $6,325 p.a.
With these sort of costs one would imagine requests to Banco De Mum n Dado will be on the increase…