For those who didn't know, the banks are trying to comply by APRA's new rules. Similar to those who ticked a box which said FHB, its just flows into the system and into a report at the end.
When you apply for a loan, just say you intend to move into it upon settlement and they will then tick the box which says owner occupier and give you the additional discount. Of course, after it settles you change your mind and stay where you are but the loan has now settled as an owner occupied loan and the bank can report to APRA that they have fulfilled their mandate.
Such cynicism. Will this scam work for those who already own a property?
We are just rejigging our loans for our new purchase and have got a better deal not a worse deal. ANZ will lose business. The mortgage market is very competitive for good property and good buyers.
Perthite, don't worry so much about Perth investors, they made a motza during the downturn and their interest rates have dropped like a stone. Even today Perth yields beat most other capital cities.
Now that Perth prices have survived the Capex wind down, the plummeting iron ore prices and the Chinese stock market crash, do you think you might change you mind about a crash in Perth?
The bank is sending a clear signal. Investing in RE is getting riskier by the day. Never been a better time to SELL.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
We are just rejigging our loans for our new purchase and have got a better deal not a worse deal. ANZ will lose business. The mortgage market is very competitive for good property and good buyers.
Perthite, don't worry so much about Perth investors, they made a motza during the downturn and their interest rates have dropped like a stone. Even today Perth yields beat most other capital cities.
Now that Perth prices have survived the Capex wind down, the plummeting iron ore prices and the Chinese stock market crash, do you think you might change you mind about a crash in Perth?
The Perth market hasn't been tested by the CHinese market or the IO crash. The job losses haven't come yet. Hell, Atlas even managed to raise almost 90MM and it's cactus.
Perth is in serious trouble. If ANZ loses market share, it's market share that they don't want. I'd expect the banks to move in lockstep.
To maintain this market, credit must be ever-expanding.
CBA will increase interest rates for housing investors by 0.27 percentage points, joining ANZ in pushing up credit costs to slow its growth in lending to landlords.
The country's biggest bank said its standard variable interest rate for investor loans would rise to 5.72 per cent, and fixed rates for property investors would also rise.
The change is the same as ANZ's move to also lift investor rates by 0.27 percentage points on Thursday.
It came as analysts predicted the four major banks' combined profits could be boosted by about $850 million if they all raised investor interest rates by 0.27 percentage points.
Both CBA and ANZ have said the changes are aimed at complying with a 10 per-cent-a year cap on lending to landlords.
A report from Bank of America Merrill Lynch analyst Andrew Hill said other banks were also likely to "re-price" their loan books to some degree in response to the Australian Prudential Regulation Authority's 10 per cent speed limit on investor lending.
"Whether peers also re-price investor loans remains to be seen but we note that NAB remains above APRA's 10 per cent speed limit (c.14 per cent as of May)," the report said.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours. Those who can, do. Those who can't, teach. "It's an itchy blanket, it's designed to remind you how lucky you are"
Yes its a brilliant excuse for an APRA-endorsed gouge! I'm surprised they didn't think of this earlier. May stall the property market but banks will be $850M better off, so what do they care? In fact, why not do another 27 points? I'll bet they think of this in due course. In fact, why not 54 points, or 108 points, since, for the first time ever, Glenn can't complain about it...
The horse has bolted, there's no denying the transmutation at this point.
Actually the trap is closing on all the investors that have bought over the past decade and seen no real capital gains. They will not be able to liquidate if they wanted to because the biggest buyer group, Investors, will be rapidly disappearing from the market. That's how ponzi schemes always end. With millions of investors holding a bag full of depreciating assets in a frozen market.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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