ANZ raises investor home loan rates

Discussion in 'Loans & Mortgage Brokers' started by turk, 23rd Jul, 2015.

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  1. albanga

    albanga Well-Known Member

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    Question I ask is how will this continuing tightening from APRA effect housing prices.

    Hot Sydney and Melvourne markets fueled by investors with access to easy equity and low interest rates will no longer be able to make purchases. Investors with smaller portfolios may still have the serviceability but changes such as this latest one will begin to put fear into buyers with decreased cashflow.
    What APRA has set out to do is no doubt going to work but if investor activity eases then only OO is left.
    Whilst this will mean more emotion fueled purchasing I simply cannot see the competition and as a result prices will stall or more likely drop!

    But I also imagine lenders are going to begin a lot more marketing campaigns to entice OO purchses. We have already seen Westpac do a 85% no LMI which I imagine is going to be just the beginning.

    So whilst investors lose I dare say those looking to upgrade and FHO will rejoice in these changes.
    Well investors may also become winners if the effect on interest rates causes rents to rise perhaps even above the rate rises.

    So the real losers becomes the renters who are struggling for a deposit.
     
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  2. wategos

    wategos Well-Known Member

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    On the contrary I see renters saving to buy their first home as winners. Interest rates lower, less competition from investors and in most cases cheaper home prices, curtailing investor demand will send most prices down for sure. There won't be any upward pressure on rents.
     
  3. Observer

    Observer Well-Known Member

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    He probably meant that those renters who can't save enough for a deposit to buy their first PPOR will be hit.

    I reckon it may put some upwards pressure on rents.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Your loan documents will state what the current standard variable rate is, then it goes on to indicate the discount from the standard variable rate you've been granted under the Breakfree package. If you read the fine print in the loan documents, you'll realise that that they can change the standard variable rate at their discretion. They can also rescind the discount applied and even change the terms and conditions of the loan at any time.

    Banks write the contracts, and they write them in their favour. Anything they give you is primarily in the interests of them remaining competitive.
     
  5. Befuddled

    Befuddled Well-Known Member

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    And from this more articles blaming greedy landlords and the plight of the poor folks renting will be written :)
     
  6. mja

    mja Well-Known Member

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    I wonder how many landlords will start raising their rents with the justification of "Well, my loan has gone up by 0.27%..."
     
  7. JonoD

    JonoD Active Member

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    Most banks offer (prefer) online statements. I've not received a paper statement for at least 2/3 years.
     
  8. albanga

    albanga Well-Known Member

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    Those with the capacity to save easily or those whom already have significant savings then yes I also believe they will be winners.

    I was more referring to those already struggling to save. I tend to disagree there will be no upward pressure on rents. Property investment is a numbers game and most landlords will choose not to just accept the cashflow loss and will instead pass it on and simply blame the absent 3rd party in this case APRA "sorry but have you been reading the papers and seeing what these animals are doing, if I don't lift rent I won't be able to put food on my table.....". Some landlords will see it is an opportunity! Up .27 I'll raise it .40

    So my concern is that those already struggling will be the biggest losers. May be wrong, but that's my take.
     
  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    *sigh* - another sting for investors. Starting to get a bit silly now. Wonder which lender will be next to move in this cash grab.

    Cheers

    Jamie
     
  10. JonoD

    JonoD Active Member

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    Not all banks have seperate indicator rates for INV and OO - thoes that use only one indicator rate will be able to easily alter the INV rate for new lending ( by tweaking discounts, as many have already done) but will find it difficult to change the rate of exisiting INV lending on there books.
     
  11. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    I never quite understood the rational of this logic "Rate rise will be passed on as rent rise".

    If a landlord could increase the rent, they would, they will not wait for certain events.
    Rents are market driven, based on supply demand, not speculated.

    Typically interest rate rise is a sign of economy upswing, but currently that's not the case, the whole APRA tightening is a result of struggling economy, increasing unemployment and a country facing an massive ageing headwind.
    Immigration can't be increased in rising unemployment its a political suicide.
    The current investor IR rise by some banks is their attempt at re-balancing a risky loan book. APRA's LVR / Serviceability tightening is an attempt to reduce the spectacle of flipping properties whilst the credit remains cheap for the struggling part of the economy.
     
    Last edited: 24th Jul, 2015
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  12. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Before this announcement, the ANZ didn't have separate indicator rates either. Now it appears they do.
     
  13. willair

    willair Well-Known Member Premium Member

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    There are a few inner Brisbane streets that over a 2 klm's strip ,and I like to count numbers one I walked the other day,had 27 properties for lease,and 12 for sale,anyone thinking they can bang up the rents better think again..
     
  14. kr11

    kr11 Well-Known Member

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    Which suburbs were they if i may ask

    Thanks
     
  15. Tattler

    Tattler Well-Known Member

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    I'd like to know too.
     
  16. willair

    willair Well-Known Member Premium Member

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    4171-..there is another one like that in east Brisbane ,also that strip goes into a industrial section combined with units development fast buck blocks and small unleased factories and 70 year old fibro 2 bedroom sitting on small blocks,and that's only one street,or as my only mate in real estate tells me all is not as it seems..
     
  17. albanga

    albanga Well-Known Member

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    @sackedwiggle
    I hear what your saying but I do not neccesarily agree. Landlords cannot just increase rents because "they would if they could". It sometimes takes an event such as what we are seeing to justify it. At the moment it is one lender but if/when they all follow suit then every landlord would be effected so as a group will likely rise rents to offset their loss making the new price the new norm. I am not saying it will happen instantly but I am expecting it to gradually happen in the coming year.

    And whilst APRA changes is not on everyone's morning read list it will only make more and more noise which as I stated gives landlords an excuse, an absent 3rd party to blame.
     
  18. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    It seems the CBA never does much that's entirely original, but they do like to copy what others do. I received this about 5 minutes ago...

     
  19. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    You beat me to it! CBA is on board the cash grab train.
     
  20. albanga

    albanga Well-Known Member

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    Toot Toot! Everyone on board, next stop Westpac and NAB.