CBA has done it too. 27 points August 10th

Following ANZ's lead. They are also changing fixed rates for investors.

 

Clear competition matching - I'd expect for this to flow across the market.

Also - changeover is 10th of August, not October.

 

http://www.perthnow.com.au/news/com...-ease-hot-market/story-e6frg12c-1227454584704

whats holding other two to jump in?

 

Time

Someone has to take the spotlight one at a time.

 

Friday afternoon, there's still time for Westpac and NAB to sneak it in.

NB, seems I cant edit the thread title, Jamie is correct, August 10 is the day.

 

What a money grab.

 

I am?

Oh - you've got me confused with the other dude.

 

Darn you're good!

Simple way of re-balancing their books in my opinion. The SA ANZ business development manager was saying to me yesterday that their owner occupier book has receeded by 2%, whilst their investors by 5% in the same period. No doubt CBA would like the same to avoid more strenuous requirements.

 

Hi all,

I just had a meeting with a couple of bankers (including some big four managers) this morning.
These lending changes to the investors loan will have domino effect to the investor lending market.

Be prepared, storm in coming.
Anyone looking for refinance, cash out, equity release or new purchase, be ready.

 

Disagree - it's not a cash or money grab. It's APRA forcing banks to hold more capital against investment loans and that cost being passed onto consumers. I highly doubt its just ANZ and CBA either, it will be most of the bigger players i suspect.

APRA's not going to tap ANZ and CBA and not tap the others. Especially on price. Imagine that boardroom conversation. Changing policy is one thing, but price is significantly more sensitive.

At this early point, I don't think there's value getting to that conclusion just yet, it causes unnecessary panic associated with one bank trying to damage their relationship with their existing customer base (media may sensationalise it into it). Its a broad macro movement, not an individual lender based change.

Others will follow, this is APRA induced, not CBA/ANZ moving on their own accord in an attempt to profit.

 

@Redom, it's convenient that this will increase capital held but lowering investor LVRs (even slightly) would have served this purpose too.

 

Did you know when you signed up for a "variable" rate loan, that they can increase your rate anytime for any reason? That's what you signed up for.

 

This change does not affect me.

 

How can CBA change their existing fixed loans? Aren't fixed rates 'fixed' so that both parties are bound by the terms and conditions of the loan contract?

 

Fixed loans are fixed for a defined period. The rate won't change. Of course, when that fixed period ends, it will revert to a variable rate and thus affected by these changes from that time.

I had a discussion about these changes with my NAB a few minutes ago, he'd only read about it in the newspaper but was oblivious to the implications. He's not aware of any similar changes at the NAB, but it's still early days...

 

therefore why the whinge?

 

Thanks for the reply. I see, so they are talking about 'changes' to the current fixed headline rate...not existing fixed loans.

Do you think the best move now is to fix all the IP loans?to avoid future pricing increases due to APRA's move?

 

Does this affect existing clients with agreed discount off the standard variable?

 

Those are two different types of changes that have different consequences.

Policymakers LOVE incentive driven changes - it tinkers the pricing and lets the market self adjust. The effect is there's less 'collateral damage'. It will simply mean that the cost of funding has increased, so the demand for investment loans will fall.

LVR restrictions create collateral damage and spillover effects. E.g. people caught in OTP transactions, first home investor effects, etc.

The targeting by APRA is very different between both approaches and the type of impact is different.

Cheers,
Redom

 

Valid point, @Redom.