Westpac!

AFR:

"Westpac Banking Corp is losing over $1 million a day because its computer systems do not allow it to charge property investors and owner occupiers different interest rates.

Australia's largest lender to landlords is the only one of the big four banks not to have increased interest rates for property investors in recent days under regulatory pressure over bank exposure to housing."

Read more: http://www.afr.com/business/banking...h-costs-westpac-over-1m-a-day-20150728-gilh37

 

That would explain the delay

 

Can one assume a higher rate increase to claw back lost revenue once this is ironed out ....?

 

HAHAHA Failpac.

Doesn't surprise me. Their online banking only just decided to join the millenium a few months ago and it's still not as good as what the other majors offer. Whoever runs their IT area should be sacked, for the amount of profit they make it is inexcusable.

 

Maybe just a simple bit of reading what happening between all the media ..

Quote..

Westpac Banking Corporation (WBC) has announced that it is seeking to raise $750 million2 through the issue of WBC Capital Notes 3 (WBC Notes..

• WBC Notes have a face value of $100 and are redeemable by the issuer on 22 March 20213

• If not redeemed before, WBC Notes convert into WBC shares on 22 March 20234

• Quarterly gross distributions5 equal to the 90 day bank bill rate plus a margin of 4.00 - 4.20% i.e. approximately 6.15 - 6.35% p.a.6

• WBC Notes distributions are discretionary but must be paid ahead of WBC dividends, and if not paid, dividend and capital restrictions apply

• WBC Notes are Basel III compliant regulatory capital instruments and contain both non-viability and capital trigger conditions which may impact their value in certain circumstances7

• ASX listed liquidity8

 

Would this apply to St George as well?

 

@DanW I'm currently waiting to see if STG will accept my refinancing. They came to valuation 3 weeks ago and did another valuation yesterday. My self employment complicates matters. I'm sure STG will follow suit.

Perhaps a good time to buy bank shares?

 

They haven't made full transition as yet.. Still a huge back log of customers waiting to go on new portal.

IBM and sandstone are behind it, just so you now @Biz

 

What are the odds that Westpac do a NAB and just hit all IO loans...

 

at least WBC is showing a will of not to go down that path........but who knows how long they can hold up before APRA catches up with them....

Personally, I might have to refinance out from NAB due to this cross fire from their system deficiencies

 

STG statement today- No more discount for solo IP loans, End of story.

I think WBC will follow, just a matter of when....as they have >40% ( dont quote me ..forgot the exact number) of the foreign buyers market on their books...esp china.

 

solo as in not xcol? their svr is 5.54%!?!?

in that case i'd rather WBC do a NAB than do a STG....

 

Do you know if that includes Advantage Pack? Interesting. Only reason most people would sign up for Advantage pack with them.

 

I think by "No more discounts", Mick means they're not discounting beyond their published offers. All lenders are still offering their standard discounts (including for investors) in their various professional packages.

The changes they've made is they're not offering additional negotiated incentives above their standard offer, and they're changing the standard benchmark rates from which the rate discounts are offset.

 

reverting to the advertised premier advantage rates (svr - 0.7%) is a hefty ~0.4% hike for many of their customers...

 

Just got word that Westpac will be tightening up next week. Serviceability will get even tighter.

 

Like NAB or just IP loans?

 

They valued the same property twice? I've never heard of that happening - did they explain why?

 

According to todays newspapers Westpac's computer systems is not able to distinguish between owner occ v investment properties so they cannot immediately apply different rates. It may take many months for them to be able to do so.