ANZ raises investor home loan rates

I have 2 IP loans with ANZ, thinking if I should fix em before Tuesday or should I leave them variable. Currently have 0.8% off SVR on one and 1% off on the other. What are the odds of me losing discounts for IP loans or SVR to rise in the coming months and year? Also have another IP variable rate loan with Macquarie, keeping a close eye on that.

 

Its unusual to have different rate discounts. You should be getting 1% off both - might be worth checking that.

Little chance of you losing the discounts as these are generally for the life of the loan. But the rates will depend on the variable rate.

Whether to fix or not will depend on your outlook on rates, what you intend to do and the difference between fixed and variable at the moment.

 

Prudent, when you look at what happened to other countries investor led property bubbles when bank lending got out of control. They need to keep smaller lenders in check also though, these were the ones funded from offshore that did the most damage in Spain for example.

 

The question is what happens next after this round of rate hike?
If this change of rate has no effect to cool current property market, will banks continue to increase rate or come up with some other measures (some are already mentioned in this forum)?
No doubt, this rate hike for investment loans is welcomed by majorities (non-property investors), Reserve Bank, etc.
Definitely, other banks will follow: why not grabbing some money with this popular rate hike?

 

I'm in the same boat. I have three different loans with ANZ; my original one (written in 2007) is 1% off SVR; the latest two are new (one from May this year and another settling in 2 weeks); they're both 0.6% off SVR. I'm under Breakfree. I asked for the same discount on the newer loans but apparently credit denied...

 

Wow - that is big. Thanks for sharing.

 

ANZ as of late has been giving a lot of two tier rate discounts, one for existing OO lending, the other for investing.

As per Debz question though, the discounts will be applied to the new associated SVR's - so the discount remains but the rate lifts with the higher base standard rate.

 

That assumes we're in a bubble, I don't think many here believe we are.

 

Fabulous I moved my hybrid trust loans from Macquarie to AMP when they stopped lending way back then. Guess that's the end of top ups for those properties.

I'm about to settle on a property next week (with a different lender) that I intend to subdivide and build two houses on. Getting very nervous that I won't service for the construction now.

 

Yep I'm sorry its sucks big time.

They have actually frozen SMSF lending until they decide what they want to do but my feeling is that they will drop their LVR to 70% and introduce the liquidity requirement.

They may just service existing clients - don't sweat it until we hear more next week.

 

So, for those of use that setup loans with ANZ as PPORs, but then subsequently moved out, are we likely to slip through the cracks and avoid an increase? They have no idea that these are now investment loans (AFAIK). I've paid my repayments, and never thought to tell them.

 

This is a rate rise. Is it enough to put the brakes on Shidonii? Will this spark further interest in Brisbane with its better yields, or have Brissie folk just been shut down before we even started (again?).

 

Macquarie have just made the announcement too:

• fixed and variable rates for new investment home loans to increase by 0.27% pa, effective Friday 31 July 2015
• variable rates for existing investment home loans to increase by 0.27% pa, effective Monday 10 August 2015.

 

Bugger

 

Almost. First Stop Macquarie

 

All of this great insight is a concern. But the biggest shocker (and yes it is only gossip at this stage..), is someones mention here that AMP might announce an exit from investment mortgage lending altogether. If true, doesnt that mean that all those 7-figure-salary-earning analysts, mathematicians, and markets 'whisperers' that AMP hire, know that 'something' in Aus or thd world is about to go to s#!t, and quick, no?

Banks and lenders will always protect themselves first and foremost. That is frightening, if true..

There was this great movie with Naomi Watts and Ewan McGregor a few years back (forget the name), based on the true story of the 2004 Thailand tsunami disaster. Anyone ever see it?

There is this epic opening sequence where she is holidaying in the seaside resort on a sunny morning with her family. Suddenly all of the birds in the trees bolt inland. Dogs, monkeys, animals etc all do the same thing and no one knows why. It is spookily quiet for about 30 seconds and then BAM! ... Tsunami.

When financial institutions make moves this bold, i cant help but think that they have the 6th sense that those animals do before disasters, that the rest of us often dont have. Of course, their 6th sense is insider data!!

 

Dont overreact.... this is just banks picking where they want to play. AMP's only point of difference has been I/O /Masterlimit type business.... with that being kneecapped by APRA, just like HSBC did many years ago, perhaps they just dont see any reason to maintain the costs of a business that isnt going to get any business... AMP has many other more proftable places to invest its efforts. Macquarie did this after the GFC as well.... AMP will be back in time.

 

The rate hike isnt designed to cool the market. It's designed incentivise you into P&I and to extract extra margin to recover their "losses" from having to set aside additional capacity. What many are still failing to understand is that APRA doesnt give a hoot about prices of property. If all investors were paying P&I I doubt they'd have stepped in at all. Their principle concern is the excessive percentage (not actual dollar amounts) of I/O debt being written as it creates systemic imbalance.

 

Cools thanks Euro. My banks/lenders knowledge is very limited! What you said makes perfect sense. Why would any business keep an arm or department of their business that isn't going to make money for them.

 

If RBA cuts later in the year, would banks consider dropping rates for OO and not investors?