ANZ raises investor home loan rates

You're right, it's in the ANZ announcement.

Keep in mind this all becomes effective on the 10/08/2015. Plenty of time to fix at current rates if that's what you want to do. Personally though, I'd fix elsewhere (and I do have ANZ investment loans myself).

 

Westpac told me if you are on their Package, there's only one rate for both PPOR and IP. Is this the same for ANZ?

 

Just another part of the evolution of rates for investment loans - which may be a big culture shock for those who have become accustomed to deep discounting during the discount wars of the previous 18 months.

 

This was the case, not any more.

 

Noooo.. and i was looking to get an equity release from them. Should i rethink?

 

what are the chances the next RBA cut, Big4 passes to OO loans, but not IP loans?

 

One possible solution for getting a good rate from ANZ:
1. applying for home loan (not investment) and getting it approved (may need 20% deposit).
2. rent it out after settlement
3. then you have home loan but it is an investment.
Any comments?

 

Well the bank will send the statements etc to your tenants.......

The secret is to get yourself a PO Box for your mail!

 

Boy am I glad I fixed 2 loans with TMBank @ 4.09% for 3 years a couple of months ago. Time for ethical 2nd tiers to pick up some more business.

 

Good point. Anyway, it is more like a cat & mouse game now.
The environment for investors is certainly different now.

 

Or forward your mail via AusPost.

 

Not true for fixed rate. The rate increase next Tuesday (28 July)!!!

 

Maybe - but it depends on why you used ANZ in the first place? If there was a strategic reason that still exists, it might pay to stay regardless of the rate. Bear in mind also, that whoever you refi to could easily follow suit in the next few weeks.

 

No - just get it in quicker i say, especially if its at high LVRs.

Direct LVR caps are coming.

 

Every broker here will tell you the following truths;
1. Except for a very small number of non banks (3-4 at best), you can borrow less today than you could borrow yesterday, and require larger deposits today than you did yesterday. This will not stop people borrowing completely, but it will stop many, and it will slow all. The era of credit expansion is at and end for the time being.
2. This is the complete opposite of what has been the case for the best part of 25 + years, where you could borrow more tomorrow than you could borrow today, with smaller and smaller deposits for the most part.
3. Pretty much every trick that was available to brokers yesterday, to squeeze just a little more capacity ,is gone today. ( except for a very small number of exceptions with perhaps 3-4 lenders at best )
4. The usefulness investors believe equity provides has just been myth busted. Without selling and reducing debt, it will pretty much provide precisely no value whatsoever when asking a bank for money.
5. The relative unimportance investors placed on cash flow and debt reduction in the pursuit of growth will now require serious reconsideration, as cash flow and debt reduction are now the main game for most who wish to continue to invest.
6. With the exception of those who still enjoy strong capacity, the first question most investors should now be asking is "where can I get the money" rather than "what is the rate"
7. I/O loans are likely going to be incredibly hard to refinance in future, for many. The LVR is likely to have little bearing as the issue will be re-qualifying with sufficient capacity under the new guidelines, in many instances. It will not be helped by bank policies that are now gunning specifically for a reduced weighting of I/O debt.
8. Cash Out for investment is likely to be severely curtailed in the near future
9. Your room to negotiate on I/O debt does not really exist anymore. Theories of pricing differentials are now very clearly becoming very real.
10. Your opportunity to refinance or borrow from a lender whose calculator accommodates you may exist now., but may not in a few months.

None of these are disasters, and prompt action will allow some maneuvering still. But the game has changed and anyone pretending it hasn't is being a fool.

 

Great post Euro. Many of these points are things that brokers have been trying to tell people for years. Only now are people really starting to believe it.

 

NZ economy is improving - apparently....so reading btw the lines Aus APRA is following the NZ path in some form.

NZ RBA max lvr of 70% as of oct 2014...which seem to improve their hosuing situation....so i can see a direct hit on LVR in Aus very soon across the board.

Ps. NZ RBA passed on a cut rate today..

 

I've got 4 loans with these turkeys

Got a call from their business services team yesterday asking if I was happy with the bank and if they could help me with anything. I wonder if that guy was sweating on having to make any of those phone calls today.

 

How does the banks know the loan is for an investment? I have my PPOR on IO terms as well.

 

Interesting, would have to check your loan documents I guess, had a look at one of mine and it says "residential investment standard variable rate". So I guess they could just add a residential investment loan rate and change mine to it down the track.