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Westpac - new reference rate for IO inv loans

Discussion in 'Property Finance' started by Blueskies, 15th Jul, 2016.

  1. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    196
    Location:
    Brisbane
    I just got a stack of letters from Westpac advising that all of my Rocket investment loans now have a new Reference rate, specifically the "rocket interest only investment rate".

    Currently this rate is the same as the p&i investment rate, but I have an innate distrust of any tinkering the bank does to my loan setup. Is this a precursor to a future higher rate for IO investment loans or am I being paranoid?o_O
     
    Terry_w likes this.
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,173
    Location:
    Gold Coast
    Probably not paranoid.

    With APRA and funding pressures not going away, I can see more "cost transfer" to those pesky investors.

    ta
    rolf
     
    Blueskies likes this.
  3. Tom Alaka

    Tom Alaka Member

    Joined:
    22nd Jun, 2015
    Posts:
    14
    Location:
    Qld
    What about your home loan (if you have home loan IO?)? I got the mails as well, and the new reference rate applies to all my PPOR and IP interest only loans. Uneasy...
     
  4. Blueskies

    Blueskies Well-Known Member

    Joined:
    24th Aug, 2015
    Posts:
    196
    Location:
    Brisbane
    Have to check but yes, pretty sure my IO PPOR loans were included too...