Harmoney is proposing a new scorecard (v1.6), got an email yesterday about it. Rates charged to borrowers are much reduced in grades C, D and E, a bit reduced in Bs and Fs, and unchanged in As.
The amount they can borrow will also change: Fs will be able to borrow up to $15k, Es up to $25k, Ds up to $35k, Cs up to $45k, Bs up to $55k and As unchanged at $70k.
grade old rate new rate variance old limit new limit
-----------------------------------------------------------------
A1 6.99% 6.99% NIL $70,000 $70,000
A2 7.99% 7.99% NIL $70,000 $70,000
A3 9.20% 9.20% NIL $70,000 $70,000
A4 10.50% 10.50% NIL $70,000 $70,000
A5 11.99% 11.99% NIL $70,000 $70,000
B1 13.39% 12.39% -1.00% $55,000 $50,000
B2 14.75% 12.59% -2.16% $55,000 $50,000
B3 15.80% 12.80% -3.00% $55,000 $50,000
B4 16.99% 13.99% -3.00% $55,000 $50,000
B5 17.80% 14.80% -3.00% $55,000 $50,000
C1 18.90% 15.90% -3.00% $45,000 $40,000
C2 20.40% 17.40% -3.00% $45,000 $40,000
C3 21.90% 17.59% -3.00% $45,000 $40,000
C4 22.99% 17.99% -5.00% $45,000 $40,000
C5 23.99% 18.49% -5.50% $45,000 $40,000
D1 24.70% 18.99% -5.71% $35,000 $30,000
D2 25.20% 19.49% -5.71% $35,000 $30,000
D3 25.49% 19.99% -5.51% $35,000 $30,000
D4 25.99% 20.99% -5.00% $35,000 $30,000
D5 26.49% 21.49% -5.00% $35,000 $30,000
E1 26.99% 21.99% -5.00% $25,000 $20,000
E2 27.49% 22.49% -5.00% $25,000 $20,000
E3 27.99% 23.99% -4.00% $25,000 $20,000
E4 28.29% 24.29% -4.00% $25,000 $20,000
E5 28.69% 24.69% -4.00% $25,000 $20,000
F1 28.99% 26.99% -2.00% $15,000 $10,000
F2 29.19% 27.99% -1.20% $15,000 $10,000
F3 29.49% 28.99% -0.50% $10,000 $15,000
F4 29.69% 29.69% NIL $10,000 $15,000
F5 29.99% 29.99% NIL $10,000 $15,000
New scorecard and details
here. HM also says that a new C3 will not be an old C3, hence why the rates were adjusted.
I find the rate drop in Cs and Ds quite drastic - it will be hard to go and chase the 20%+. I guess it depends on an individual investor's strategy. Personally, I was quite content to stay B5 to D3, but to achieve reasonable returns of, say, 17-18%, I will either have to go "deeper" to the mid Es, or to forgo As and Bs and reduce diversification and solely focus on C1 to D5 or thereabouts.
Food for thought...