Westpac!

Discussion in 'Loans & Mortgage Brokers' started by Till Kingdom Come, 28th Jul, 2015.

Join Australia's most dynamic and respected property investment community
Page 3 of 3
  1. MRO

    MRO Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    318
    Location:
    Perth
    Sellers may be willing to do this in a rising market but if things turn bad they will want to cash the guarantee and seek further costs.
     
    MRO, 29th Jul, 2015
    #41
  2. Doraemon

    Doraemon Active Member

    Joined:
    24th Jul, 2015
    Posts:
    33
    Location:
    Australia
    Has anyone here heard anything about WBC may in the near future hike up their variables rates by a whole 1% on foreign income investors, and 0.35 on investors with local income?
     
    Doraemon, 29th Jul, 2015
    #42
  3. Aaron Sice

    Aaron Sice Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,588
    Location:
    Ocean Reef, WA
    i'm wondering if a rate cut is "likely" and banks are simply keeping rates steady, by default, on speculators on advice from APRA....
     
    Aaron Sice, 29th Jul, 2015
    #43
  4. womble66

    womble66 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    61
    Location:
    Illawarra NSW
    I can't do much about any APRA enforced changes that WBC may like to choose to implement, including any additional grab for profit that may be included under the guise of this change, but where is the evidence they will also be reclaiming any additional negotiated discount on existing Premier Advantage package?

    Both my loans are IO but I chose to stop renting one of the IPs and subsequently moved into it as my PPOR and dumped 100% equivalent funds in the offset so in theory pay $0 interest but other than advise WBC of the change of address I never changed the status of the property in relation to being an IP or PPOR for the purpose of the loan as I may move out in the future.

    Be interesting what impact the new APRA changes will have on my current setup in respect to how WBC will change the rates for the loans based on being a PPOR or IP or if hey will force me into a position where I don't want to be :(
     
    womble66, 29th Jul, 2015
    #44
  5. chylld

    chylld Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,701
    Location:
    Sydney
    None yet thankfully... just expanding on posts by Mick and Peter on the first page.

    In the scheme of things, interest rate rises aren't that big a deal. Tighter serviceability calcs and LVR limitations, on the other hand, ARE a big deal :( Broker told me no more topups... (in my particular setup)
     
    chylld, 29th Jul, 2015
    #45
  6. Natedog

    Natedog Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    373
    Location:
    Brisbane
    I've had the same thought, the RBA have openly discussed "working with other regulators" in relation to booming property prices.....
     
    Natedog, 29th Jul, 2015
    #46
  7. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    The Council of Financial Regulators (RBA-APRA-ASIC) have been saying that for many months already.

    Many investors have not been paying attention and instead were still living in La La Land of rainbow lollipops and unicorns.
     
    Till Kingdom Come, 29th Jul, 2015
    #47
  8. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    Once they are confident they have the property popcorn under control, the RBA can resume the rate cuts and the banks will pass it only to owner occupiers.

    The next competitive battleground among banks is the OwnOcc loan market.
     
    Till Kingdom Come, 29th Jul, 2015
    #48
  9. Hanison

    Hanison Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    249
    Location:
    Brisbane
     
    Hanison, 29th Jul, 2015
    #49
    Brady likes this.
  10. Natedog

    Natedog Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    373
    Location:
    Brisbane
    If this dampening of investor lending continues, and ramps up further, another battleground "may" be amongst prospective tenants trying to find a property to house themselves in.

    " today tonight reports the ever growing lack of rental property available as landlords raise rents, creating bidding wars amongst tenants to secure a lease"

    Fast forward 12-24months.....it could happen......

    If it does, then what happens, restrictions on lenders ease?

    Back to business as usual?
     
    Natedog, 29th Jul, 2015
    #50
  11. chylld

    chylld Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,701
    Location:
    Sydney
    I had a recent open for one of mine, 19 groups through in 15 minutes... had a flood of applications the following Monday. Friend experienced worse recently but from the tenant side of things

    Raising the rent on one of my others, don't see any need to be ng if I don't have to be...
     
    chylld, 29th Jul, 2015
    #51
  12. Cadbury99

    Cadbury99 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    195
    Location:
    QLD
    Cadbury99, 31st Jul, 2015
    #52
  13. Till Kingdom Come

    Till Kingdom Come Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    129
    Location:
    Aussie Aussie Aussie Oi Oi Oi
    Till Kingdom Come, 31st Jul, 2015
    #53
  14. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    4,752
    Location:
    Here!
    Wow that was fast
     
    jaybean, 31st Jul, 2015
    #54
  15. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,979
    Location:
    Canberra, Brisbane and Sunshine Coast
    Effective from 10 August 2015, the standard variable interest rate on Westpac residential investment property loans for new

    customers will increase by 0.27%. For existing customers the increase will be effective 25 September 2015. In addition, our

    fixed rates on residential investment property loans will increase by up to 0.30%, effective 4 August 2015.

    However, we are pleased to announce that we will be decreasing the fixed rates on owner occupier home loans by up to

    0.30%, effective 4 August 2015.
     
    Jamie Moore, 31st Jul, 2015
    #55
  16. Fargo

    Fargo Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,304
    Location:
    Vic
    Capping what at 80% joanmc, what ever it is the answer is probably no
     
    Fargo, 1st Aug, 2015
    #56
  17. rhinsor

    rhinsor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    662
    Location:
    Perth
    When it's costing the company millions, you'll be surprised how quick they can implement I.T. changes.
     
    rhinsor, 1st Aug, 2015
    #57
  18. chylld

    chylld Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,701
    Location:
    Sydney
    or more like, how confident they are that they can implement the changes in 8 weeks' time...
     
    chylld, 1st Aug, 2015
    #58
  19. Tim86

    Tim86 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,818
    Location:
    Brisbane

    I think everyone needs to calm down a little bit here. This is Westpac we are talking about.

    First they will attempt to apply the increased rate, however they will misplace the paperwork and cause a months delay.

    Then they will submit the wrong changes and perhaps increase the fee on withdrawals by mistake. That will take at least 3000 complaints before they recognise their mistake and say 3 months to fix up.

    Next they will attempt to implement changes in the wrong country...etc...

    My estimate is we will see these changes successfully implemented in around 10 years time.
     
    Tim86, 1st Aug, 2015
    #59
    He Man, joanmc and chylld like this.
Page 3 of 3