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Bankwest Investor Variable rate & "regulatory measures"

Discussion in 'Property Finance' started by ramblin72, 10th Sep, 2015.

  1. ramblin72

    ramblin72 Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    46
    Location:
    QLD
    Today I received letters from Bankwest telling me that 4 of my IP loans are increasing by 0.32% each.

    The letter states that:
    Regulatory measures have resulted in mortgage lenders implementing various changes to home loans.

    It makes no mention of any regulatory authority, what the regulations are nor where to read more about them. Just that one sentence.

    It then says:
    One of the changes that Bankwest is introducing is to differentiate between property investor and owner occupied home loan interest rates.

    And I note it specifically says that "Bankwest is introducing"...not any regulatory authorities etc. It is purely Bankwest policy.

    It then says it has identified our 4 loans as investment and that our Loan Contract will be varied to the Investor Variable Reference Rate, which is 5.79%. Two of my loans will get a 1.01% interest discount and the other two will get 1.05% discount. All up though all of my loans increase by 0.32% each exactly.

    So my question is, has anyone else received such letters from their bank? I just am baffled by the justification to pull new interest rates out of their backside by stating "regulatory measures" and then not saying what they are and why they impact a rate increase anyway.

    And then also stating that they have decided to identify the loans as investment and I wonder why does that need a rate increase anyway.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra and Sydney
    Yes - almost every lender has done the same. The hike in rate has varied between 20 bps to 47 bps
     
    EN710 likes this.
  3. Harry Goyal

    Harry Goyal Member

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    22nd Jul, 2015
    Posts:
    8
    Location:
    Victoria
    Hi Ramblin,

    Its not just Bankwest, all the major 4 banks have made more stricter rules for investor property loans as compared to owner occupier loans. This scenario is followed to meet the APRA's 10 per cent guidelines.
     
  4. SaberX

    SaberX Well-Known Member

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    29th Jun, 2015
    Posts:
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    Location:
    WA
    Just a blatant cash grab on existing properties as the lending is already done and dusted. If anything limits the excess cash flow available for future offset accounts or a new deposit therefore ironically you'd need higher lvrs i assume to even get through
     
  5. ramblin72

    ramblin72 Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
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    Location:
    QLD
    thanks for the replies everyone. it definitely seemed lacking in any justification. guess i will crunch my numbers and move on if it makes sense
     
  6. imbi3

    imbi3 Well-Known Member

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    27th Jun, 2015
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    Location:
    VIC
    The problem is, every bank is doing it so you are back to square one, unless you move into one of your IPs
     
  7. sammmeee

    sammmeee Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    61
    Location:
    perth
    yep got the dreaded letters too...gone from4.27 to 4.59 booooooooooooooo for all my investment accounts
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Melbourne, Nationwide
    There's nowhere to move to. If you chose BW for the rate, odds are everyone else is going to be more expensive or only marginally cheaper and it won't be worth the cost of moving.

    It's not just the mainstream lenders that have adjusted their rates, every lender I can think of has made amendments to various policies and rates recently.
     
  9. pinewood

    pinewood Well-Known Member

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    8th Jul, 2015
    Posts:
    94
    Location:
    Vic
    I have got the same letter and am really annoyed. It seems like a breach of contract. Why are the banks able to get away with this? Why can't the rules apply to new investors and not existing ones. I have only had my loan for a month and this happens. Can investors band together and protest and deem this practice unacceptable?
     
  10. rhinsor

    rhinsor Well-Known Member

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    18th Jun, 2015
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    Location:
    Perth
    I got the exact same rates changing for 2 IPs.

    I will consider my options of staying or moving.
     
  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    If you read the terms and conditions of your loan contract, you'll find words to the effect of the bank can change the (variable) rate at any time. Definitely not a breach of contract.

    Investors certainly can band together and as consumers can take their business elsewhere. Not that there's anywhere else to go...
     
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  12. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra and Sydney
    If you're annoyed about the rate - moving is unlikely to help as other lenders have implemented the same rate hike.

    Cheers

    Jamie
     
    pinewood likes this.
  13. tobe

    tobe Well-Known Member

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    Location:
    Melbourne
    We could get together and go on strike, stop new lending and pay down our existing debts. That would show them.
     
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