Westpac!

Thanks Terry. Thought you meant that you got word on WBC increasing their rates too next wk

 

I went to westpac today and got part of my loan fixed for 5 years.
It is linked to an apartment which I am not going to touch for some years.
Just want to have a control, and sleep well.
If the rate gets lower, that is extra money not for me.

 

No. The person who came the second time spent less than 2 minutes snapping photographs and left, shrugged and said maybe the first valuation may have expired when I asked why. This is STG. This morning I learnt that the valuation stays the same as the previous one.

 

Hhmmm will be interesting to watch over these coming weeks.

 

The returns from these securities are lower than the dividend yield on WBC shares and I don't think they have franking credits too.

One might be better off holding WBC shares than these hybrids.

 

Yes Westpac did not increase their interest rate like other banks but they have substantial change in servicing rule and lvr cap.

 

Will that be enough for APRA tho?

 

Yes, quite a few people are not getting loans approved because of the increased servicing rule.

But I don't see how this will work out in the long run because this is also hurting those PPOR buyers. Will need to keep a close look in this area.

And just a side topic, I am also seeing some off the plan purchasers are winding up their bank guarantee because they can't get mortgage, looks like my prediction is going to come sooner than I expect.

 

Woo hoo, hunting season.

 

Westpac upset me in 1981 (or thereabouts).

I haven’t been back since.

Bear no grudges.

 

"T-K-C",, yes you are right I have a small amount for a while now,and as most high end bank equities track each other up or down longterm,do you yourself invest in equities as you seem to have a solid understanding on the way the system works,keep posting everybody learns off each other in different ways..

 

what - "costing them $1mil per day" - as in, they're losing money?

or just not keeping up with the other money grabs?

i see this causing the same issues that the credit crunch brought about - lack of investment in new housing and more expensive housing because of it.

 

It's their money, they can charge any interest rate they want. Read your loan offer you signed.

Next time you buy property, use your own money, not the bank's. Otherwise you have no right to complain.


So by not being able to charge additional interest in the current environment, they are indeed "losing" money.

 

Well I'm not a fan of Aussie shares anyway. I have 100% of my shares invested in International Companies, mainly US ones. Not only is the AUD dropping, the international companies I selected have much better growth and dividend prospects than Aussie blue chips. Past years I borrowed 100% LVR on International shares, have returned more than 20%pa after taxes. Don't ask how I borrowed 100% but the answer is in your home loan and a tax ruling.

Anyway it's out of topic.

 

would love hear more about the stocks you chose.

i'm a short trader - i smell nervous greedy people and short short short.

it's quite tiresome though and would love a more passive approach after initial DD

 

My Westpac manager told me they wont count yields over 7%, and only count 70% of rent. Will only lend 50% LVR on present security, Using 2 unencumbered properties wont help. So have buggered any high yield strategy. After already hitting the serviceability and spending 12 months getting yields up about 30% and selling one that netted 5% to do so, looks like it was pointless. Are they going to make it harder again?

 

Change banks...WBC is getting hit hard by APRA>...Westpac dont take in negative gearing so their servicing for investors will be ****

 

Are all lenders capping investment loans at 80%?

 

How do you 'wind up' a bank guarantee? The whole purpose of a bank guarantee is to provide security for the seller, a bank guarantee can't usually be cancelled unless it is physically handed back by the seller. It usually offered by the purchaser instead of cash, kind of like saying a purchaser is pulling back their deposit because they cannot get a loan.

 

Sorry maybe I shouldn't use the word wind up, the BG can be cancelled with both the seller and buyer's consent either through solicitor letters stating the seller no long interested in holding the BG.