Westpac is raising rates on interest-only loan...

Discussion in 'Loans & Mortgage Brokers' started by paulF, 24th Aug, 2016.

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  1. paulF

    paulF Well-Known Member

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    paulF, 24th Aug, 2016
    #1
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  2. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Colin Rice, 24th Aug, 2016
    #2
  3. Wukong

    Wukong Well-Known Member

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    Does this impact existing loans?
     
    Wukong, 24th Aug, 2016
    #3
  4. Sonamic

    Sonamic Well-Known Member

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    Of course. Unless you're already switched to Fixed.
     
    Sonamic, 24th Aug, 2016
    #4
  5. Delfredo

    Delfredo Member

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    Which other lenders (sorry for my ignorance)? ING Direct has the same OO rate for P&I and IO loans, so one day the IO rate may drift upwards independent of P&I rate?
     
    Delfredo, 24th Aug, 2016
    #5
  6. Wukong

    Wukong Well-Known Member

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    Now I'm worried CBA will take back some of that 1.5% discount they gave us
     
    Wukong, 24th Aug, 2016
    #6
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  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    They already took some of it back 3 weeks ago by not passing on the rate cut. The CBA were well prepared and made their announcement about 6 minutes after the RBA.

    They're not going to reduce the discount itself, but the next time you try negotiate you're probably going to be disappointed.

    The pricing war of the last 6 months has little to do with getting a good deal for borrowers and a lot to do with poaching business from competitors. Somebody has to pay for it so it is going to come back to borrowers in the end.
     
    Peter_Tersteeg, 24th Aug, 2016
    #7