Westpac Increases rates for investors

I haven't received any notification yet as a broker, but there is a news article on the SMH http://www.smh.com.au/business/bank...es-for-housing-investors-20150731-giovt2.html

Read more: http://www.smh.com.au/business/bank...-investors-20150731-giovt2.html#ixzz3hTFD6zBp

 

St George 0.25% according to the article. Not overly happy about it, but not as bad as it could have been either!

 

Confirmed.

Westpac will increase rate for existing investment loan by 0.27% as of 25/9/2015 ( LOl at the delay ....i guess their IT pplgot a deadline to meet...)

For new investment loan it will increase by 0.27% as of 10/8/2015

Also Westpac has made a few policy changes, making them a lot hardier to service and hardier to take out equity...

 

Harder or hardier? If hardier like a Tonka truck, that sounds good.

 

Bugger - they were my next preference.

 

I've got a few IO loans with them and the 5 year IO period is due for renewal next year. I'm wondering whether their tick and flick IO renewal process is still going to apply or whether they will look to move more of their business to P and I loans?

 

Hi

Can someone explain to me the logic behind the delayed timing of teh rate increases.

Existing investment property customers will have their variable interest loans increased from 25/9/2015 - are Westpac hoping that existing customers will switch to fixed interest before 25/9/2015.

And the interest rate for new investment property loans (not "new" customers) will increase from 10/8/2015 - are Westpac saying load-up now because rates for new loans are about to increase.

Thus as someone with several IP's with Westpac, and looking for more, my best option would seem to be switch to fixed interest for existing loans, and jumpin now for any new loans.

Where is the benefit to Westpac by the delayed implementation.

Tony

 

It was mentioned somewhere in this forum: Westpac is having a technical problem (computer?) and unable to implement these changes in time. It seems that other banks just pressed a button for implementing this rate hike. It is in the news too.

 

Westpac couldn't differentiate between PPOR and investment lending. Software problem.

 

This is a tough question.... especially because Westpac seem to be taking an incremental approach to their tightening. I suspect you'll be an easy target for them, though - remember unlike AMP, who needed to get under the 10% APRA threshold by Dec 31 this year, Westpac and other lenders have until June 30 2016 to do so - hence the incremental approach rather than boots and all approach of AMP.

Given how far over the 10% threshold Westpac is.... making it hard for I/O terms to be renewed seems like low hanging fruit to me . You should seriously consider refinancing to a lender where you can secure another 5 or 10 years I/O, while you are able to- just as a contingency. Otherwise, consider the possibility of being P & I next year, in an environment where no one is readily open to taking on I/O refinances.

 

I agree get it done asap. I have one due in 12 months but I'm not waiting. Be too greedy and you'll get burned.

 

Thanks for your thoughts @euro73.
I was a long way from any serviceability wall but it appears to have been moved a little closer. I will look at obtaining some more funding sooner rather than later though.

 

Hi Guys,

In lieu of the rates hike by Westpac, has anyone decided to switch to fixed interest on your loans? If so, what rates are Westpac offering at the moment and for what loan amount?

 

Many have panicked and fixed. But in my opinion it doesn't necessarily follow that it is a good time to fix.

 

In other big end of town games like petrol price the overlords like ACCC are always looking for collusion. Can anyone tell me how this move on investors of roughly a quarter per cent is not a classic example of collusion. There may b e a reasonable reason but I am just asking

 

Yes, this is really collusion. But it could be argued that the first bank established the increase amount and the rest are just following the market now.

 

Its interesting hey - one bank comes out and the rest follow - what is the real cost to the banks? as an alternative - I am using non bank lenders - no ********, real service and lower rates...why not?

These increases are nothing more than a disgrace.


Cheers Ivan