Were you given notice of investor rate increase?

You sure its not x coll?

 

Definitely not x coll.
Small boom in perth 2013-14 so I refinanced the house and got 3 separate loans using the equity. 1 PPOR, 2 future deposits, 3 deposit for ip 4.
Also refi last year with AMP to have cash sitting there for furture IPS. Happy I did now as now it would be very hard to do

 

yes. it was at the top of netbank (cba) announcements.

 

letter from SGB on day after rates went up!

 

just received few from Westpac!



Hello PM,

Can you please review the rent?

 

In which direction?

 

@D.T.

Hopefully North, except one in Perth!

 

Yea, dropped my Perth one nearly 10% and still only got 1 applicant. Luckily my Adelaide ones are all accepting rent increases

 

i think we went from $395 to $340 to secure tenants in Perth. i guess it is a tough market in some pockets

 

Definitely no letter. I have 4 loans with ANZ. I have 3 properties. This gave me yet another reason to request they rewind those changes or I start looking elsewhere.
The first and most important reason I want to leave ANZ is because I am an existing customer with IP loans and ANZ (or any other lender for that matter) have ZERO justification for raising rates on existing loans.

APRA's two directives to the banks was to

1. Restrict the annual growth in residential property investment loans to 10% or less year-on-year.
2. Increase the amount of capital they hold against their residential mortgage exposures.

Neither of those two directives justifies targeting existing IP loans. The only reason they are doing so is to grab more income. To fairly implement point 1. the banks should only target new IP loans or increases to existing ones. taxing existing customers will NOT achieve point 1. in the slightest.
To fairly implement point 2. they should raise the rates for all residential mortgages (new/existing/PPOR/IP).

I then went in search of a lender who hasn't discriminated against existing IP customers (plus needing to meet a few other requirements I have) but have so far drawn a blank.
If I had another lender lined up I would have more leverage to demand ANZ reverses their greedy increase, but right now I'm still searching.

 

Hi Tallowood, appreciate your frustrations, although leaving based on it may yield little fruit.

You can likely still find a few options out there that haven't changed (smaller credit unions).

The problem is, its likely only a matter of time before they also apply differential rates - differential rates that apply to both existing and new debt.

That'll mean you may be stuck with the same problem. The entire market has just about moved, or will likely move.

Some lenders have delayed it, advertised it and had an increase in business - only to increase their rate shortly after (Gateway, etc).

Cheers,
Redom

 

Thanks Redom. I'm also not the only person who thinks the banks are seeing this as a blatant money grab, From here, "PIPA Chair Ben Kingsley said increasing interest rates for existing investors appeared to be an opportunistic move by banks that could have potentially harmful flow-on effects to the broader property market."

If most other lenders have a differential then the only motivator for me to switch now is to get a lower variable rate that makes it worth my while to switch.

I'm currently getting 4.75% on loans totalling $1.15M with an LVR currently approx 58%. Roughly my PPOR is worth $1M and the IPs about $1M. What kind of variable rate could I get today if I switched ? I only need an offset account, No need for everyday banking or CC.