Westpac plans to 'dump' risky property investors as rates rise and returns fall

Yes, but be prepared for all relevant eventualities ..

 

Perhaps these are investment property loans in the name of SMSFs or other limited liability entities, where the risk of jingle mail is real in a negative equity situation?
I highly doubt a letter like this would be sent to everyday residential property investors, not at this stage anyway.

 

Did any buyers agents/groups specifically use Westpac for funding and revals?

 

Love a good rhetorical question

 

I never read the Australian article but Gottlilebsen seems to be backtracking today

"
In the Financial Review and other websites we had a story saying that Westpac wrote to a number of its customers who had borrowed money to buy investment dwellings. The reports said that Westpac customers were told that the bank no longer wanted to fund them and would cease funding them in a month.

The articles quoted the letter as saying that to continue lending to this group of customers Westpac would no longer be responsible and that it was now a bank that only loaned responsibly.

Westpac senior people strongly denied sending the letter and, to date, a copy hasn’t been produced.

But there is a message in the letter that the author is trying to convey, albeit dramatically – that most borrowers on interest-only loans face much larger payments once their loans mature and the overall level of home lending is to be cut severely and they may not get new loans.

 

Interesting news @radson. An outcome predicted by many in this thread.

 

I must admit i'm not a fan of Gottilebsen, but this seems particularly disingenuous.

"But there is a message in the letter that the author is trying to convey, albeit dramatically "

So the news was fake but its ok, because I agree with the sentiment?

 

Can you get a copy of the letter?

 

I am chasing my friend who is super stressed and scrambling to find a new lender...

He has enquired with Westpac and apparently it’s because he didn’t declare an extra credit card he had open when he applied for additional loan, therefore this implies fraud and he doesn’t have a leg to stand on apparently.

Only a 10K limit but he is getting his lawyers involved to try and buy more time...

 

Ok I will try and get copy of original letter in next few days, please don’t ban me from forum in the interim Simon!

 

I would love to see this elusive letter. There has been a lot of chatter but no proof.

 

Ha ha.

Can’t hide

 

Half the threads these days are basically trolling. Like that great 60 minutes troll. Still, this stuff is all over the media so we may as well discuss it and set the record straight. Look how many brokers chimed in to call BS on this story right from the start. Still no proof has been given that the letter actually exists.

It sorts out who is legit from who is naive/trolling. Like the poster who chimed on with "lots of naive people here". Really? The story is fake. Who's being naive?

 

Unfortunately it’s hard to do because it was quoting the AFR which is meant to be a respectable journal. So it’s not just some random BS web site (Albiet the AFR May be quoting a BS website.

However still a lot of miss information being touted as fact.

Blacky

 

Or failing to declare a HECS debt as an example. Quite common IMO and easy to overlook.

 

Oh, sorry I didn't realise @Rachel92 was a troll

I just thought it'd be a great opportunity if they could share..... given they've personally seen a letter that nobody else in the entire investment or broker community has seen and that Westpac denies exists it would be extremely valuable for those interested!