Bankwest puts a hold on investment lending

Discussion in 'Loans & Mortgage Brokers' started by tobe, 3rd Feb, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
Page 1 of 2
  1. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,814
    Location:
    Melbourne
    Investment lending
    Bankwest remains committed to supporting a stable national housing market and sustainable economy in line with regulatory guidance.

    As a result, we will no longer accept applications from new customers seeking to refinance their stand-alone investment lending, effective Friday, 3 February 2017.

    Brokers are advised that we will continue to monitor the impact this change has on our customers and the market, in order to maintain prudent lending and a sustainable business.


    Email received this afternoon. Interesting times.
     
    tobe, 3rd Feb, 2017
    #1
    Observer and Perthguy like this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,685
    Location:
    Perth WA + Buderim Qld
    "OH NOOooooo!" said no PC broker ever. :p

    But yes - interesting times, for sure!
     
    Jess Peletier, 3rd Feb, 2017
    #2
    RetireRich101, spludgey, D.T. and 3 others like this.
  3. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Wow! I wonder if this reflects the markets in which they have been writing most of their investment loans?

    There could actually be mixed motives here, like reducing credit staffing levels as a cost cutting move whilst focusing on non-investment lending. To what extent do banks outsource credit assessment teams?
     
    wombat777, 3rd Feb, 2017
    #3
  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,685
    Location:
    Perth WA + Buderim Qld
    They are still doing purchases, and also x-coll with OO it seems, just not straight IP refi's. They'll come back, it's just a bit of book balancing.
     
    Jess Peletier, 3rd Feb, 2017
    #4
  5. jim1964

    jim1964 1941

    Joined:
    18th Jun, 2015
    Posts:
    1,301
    Location:
    Westcoster Strahan Tasmania
    jim1964, 3rd Feb, 2017
    #5
  6. Phantom

    Phantom Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    2,054
    Location:
    Sydney
    My understanding is that they are still also doing investment loans for existing customers who also hold OO loans with them. Just not NEW investment only customers.
     
    Phantom, 3rd Feb, 2017
    #6
    wombat777 and Jess Peletier like this.
  7. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    AMP quit all new investor lending last year or the year before. It didn't last long
     
    Perthguy, 3rd Feb, 2017
    #7
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,654
    Location:
    Gold Coast (Australia Wide)
    Its Bankwest.................................................

    ta
    rolf
     
    Rolf Latham, 5th Feb, 2017
    #8
    Steven Ryan likes this.
  9. klabat

    klabat Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    158
    Location:
    Australia
    New customers looking to refi ppor and release equity still ok with them?
     
    klabat, 6th Feb, 2017
    #9
  10. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,814
    Location:
    Melbourne
    they were never a great choice for that sort of thing, but they are still doing it (badly).
     
    tobe, 6th Feb, 2017
    #10
    Jess Peletier likes this.
  11. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,860
    Location:
    My World
    Screws are tightening

    I think its a reflection of times and the roaring Sydney and Melb market. I am in Melb at the moment and shortage of stock is continuing to drives prices north.
     
    MTR, 6th Feb, 2017
    #11
  12. Redwood

    Redwood Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    691
    Location:
    Melbourne
    Hey MTR - where is the shortage of stock? Cheers Ivan

    Enjoy our 19 degree day
     
    Redwood, 6th Feb, 2017
    #12
  13. Drgonzo

    Drgonzo Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    237
    Location:
    Berry NSW
    You mean the myth of a shortage surely. Speculation is driving it nothing more.
     
    Drgonzo, 6th Feb, 2017
    #13
  14. Brady

    Brady Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,570
    Location:
    Adelaide, SA
    APRA
     
    Brady, 6th Feb, 2017
    #14
  15. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,860
    Location:
    My World
    I am talking about my neck of the woods, Croydon, developers stock, townhouses not enough stock.

    I would like to hear from other developers
     
    MTR, 6th Feb, 2017
    #15
  16. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,860
    Location:
    My World
    don't know, if prices are rising means there is a shortage, I am talking Melb, no idea on Syd, not watching this market..... what does this ???? perhaps close to peak....who knows, I have sold out, I am a big chicken.
     
    MTR, 6th Feb, 2017
    #16
  17. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    Property shortage is not the reason for rising prices. The continued climb is a result of low sustained interest rates.
    If you want to point the finger then aim it squarely at emotional owner occupiers and inexperienced property developers paying overs to secure land without any real understanding of the costs involved.
     
    albanga, 7th Feb, 2017
    #17
    Peter_Tersteeg and paulF like this.
  18. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,860
    Location:
    My World
    That is what I have been told by agents, they can't get enough stock, low interest rates is a symptom, means there are plenty of buyers and not enough stock. That is why we have rising markets, low interest rates is a driver
     
    MTR, 7th Feb, 2017
    #18
  19. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,701
    Location:
    Melbourne
    Their are plenty of markets that have loads of stock in Melbourne and as per my above the prices on these are being inflated by inexperienced property developers and emotional owner occupiers.

    I know this because I go and watch these auctions unfold! I see the heartbreak on the home buyer who clearly went an extra 20k over budget against an inexperienced developer planning to do their first 2 townhouse development. Funny thing is I know roughly what it would cost to develop them and for what they are paying their MAY be 30k of cream in the deals BEFORE TAX!!

    This is not a stock issue. This is a RATE and stupidity issue.
     
    albanga, 8th Feb, 2017
    #19
    paulF likes this.
  20. MTR

    MTR Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    27,860
    Location:
    My World
    Been reading the land and house threads and titles for land are are taking over 12 months to be issued, and there is pent up demand from what I have read, I am not looking?

    If there is no money in the deal its typical of people losing their head when markets are hot. The only saving grace will be if prices continue to rise.

    I know prices are still rising where I have been buying? and I have been told they do not have enough stock, development sites, houses and townhouses therefore townhouses have now jumped another level. Eventually it will slow down but not seeing it in these area.. ie Croydon, Ringwood, Thomastown, Lalor
     
    MTR, 8th Feb, 2017
    #20
Page 1 of 2