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CBA has done it too. 27 points August 10th

Discussion in 'Property Finance' started by tobe, 24th Jul, 2015.

  1. tobe

    tobe Well-Known Member

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

    Corey Batt Finance Strategist Business Plus Member

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

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

    thewisestfool Member

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  4. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    thewisestfool likes this.
  5. tobe

    tobe Well-Known Member

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    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.
     
  6. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    What a money grab.
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I am?

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

    Corey Batt Finance Strategist Business Plus Member

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    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.
     
  9. TaylorChang

    TaylorChang Well-Known Member

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    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.
     
  10. Redom

    Redom Mortgage Broker Business Member

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    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.
     
    Last edited: 24th Jul, 2015
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  11. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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

    Till Kingdom Come Well-Known Member

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    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.
     
  13. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    This change does not affect me.
     
  14. Doraemon

    Doraemon Active Member

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    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?
     
  15. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    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...
     
  16. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    therefore why the whinge?
     
  17. Doraemon

    Doraemon Active Member

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    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?
     
  18. mrdobalina

    mrdobalina Well-Known Member

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

    Redom Mortgage Broker Business Member

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    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
     
  20. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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