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Westpac rejigs property loans to attract cashed-up buyers; Investor loans under 4.00%
Topic Started: 4 Jul 2017, 08:27 PM (873 Views)
Rufus
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Westpac rejigs property loans to attract cashed-up buyers
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Westpac has launched an aggressive push into the residential investment property market with a fixed rate offer below 4 per cent as other lenders pull-back by raising rates by up to 40 basis points.

The bank and its subsidiaries, Bank of Melbourne, St George and BankSA, are restructuring their lucrative property portfolio in response to tough regulatory growth and size restrictions on investment lending.

It also comes as lenders and mortgage brokers, who act as intermediaries for borrowers, warn the Reserve Bank of Australia that lending conditions are the most volatile for a decade, or since the end of the global financial crisis, despite near-record low cash rates.

Westpac is offering a residential, principal and interest investment loan with a headline rate below 4 per cent, which was the benchmark for cheap loans before the prudential regulars imposed caps to contain exuberant lending.

Australia and New Zealand Banking Group and National Australia Bank also have two-year offers below 4 per cent, according to Mortgage Choice, the national mortgage broker.

Last week the nation's second largest mortgage lender axed a range of higher risk mortgage products and recently raised interest-only loans by 34 basis points.
Other lenders are announcing another round of rate increases that feature increasing interest-only rates and incentives to encourage a switch to principal and interest.

Regulators are concerned interest-only loans encourage borrowers to take out bigger loans and raise the possibility of financial stress if rates rise, or personal circumstances change.

Latest data reveals the average debt of every household has soared to twice annual incomes and is rising.


Read more: http://www.afr.com/personal-finance/westpac-rejigs-property-loans-to-attract-cashedup-buyers-20170703-gx4092#ixzz4lqycnOSk
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Take risks - if you win you will become wealthy, if you lose you will become wise
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herbie
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Rufus
4 Jul 2017, 08:27 PM
Westpac rejigs property loans to attract cashed-up buyers
LINK

Westpac has launched an aggressive push into the residential investment property market with a fixed rate offer below 4 per cent as other lenders pull-back by raising rates by up to 40 basis points.

The bank and its subsidiaries, Bank of Melbourne, St George and BankSA, are restructuring their lucrative property portfolio in response to tough regulatory growth and size restrictions on investment lending.

It also comes as lenders and mortgage brokers, who act as intermediaries for borrowers, warn the Reserve Bank of Australia that lending conditions are the most volatile for a decade, or since the end of the global financial crisis, despite near-record low cash rates.

Westpac is offering a residential, principal and interest investment loan with a headline rate below 4 per cent, which was the benchmark for cheap loans before the prudential regulars imposed caps to contain exuberant lending.

Australia and New Zealand Banking Group and National Australia Bank also have two-year offers below 4 per cent, according to Mortgage Choice, the national mortgage broker.

Last week the nation's second largest mortgage lender axed a range of higher risk mortgage products and recently raised interest-only loans by 34 basis points.
Other lenders are announcing another round of rate increases that feature increasing interest-only rates and incentives to encourage a switch to principal and interest.

Regulators are concerned interest-only loans encourage borrowers to take out bigger loans and raise the possibility of financial stress if rates rise, or personal circumstances change.

Latest data reveals the average debt of every household has soared to twice annual incomes and is rising.


Read more: http://www.afr.com/personal-finance/westpac-rejigs-property-loans-to-attract-cashedup-buyers-20170703-gx4092#ixzz4lqycnOSk
Follow us: @FinancialReview on Twitter | financialreview on Facebook
3.85% tha youngs (wot's got their 20% deposit) tells me they can get from Suncorp - Wif a full offset wot's got some bells 'n whistles attached.

Annual fee for same bein' about $380 as I recalls.
Edited by herbie, 4 Jul 2017, 11:06 PM.
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Rufus
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herbie
4 Jul 2017, 11:02 PM
3.85% tha youngs (wot's got their 20% deposit) tells me they can get from Suncorp - Wif a full offset wot's got some bells 'n whistles attached.

Annual fee for same bein' about $380 as I recalls.
That sounds about right, but that's for an owner occupier not an investment property. They are usually about 0.50% higher.

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Tyson
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That's great news, I can't read the full article since I don't have a subscription to that site.

When does those new rates come into affect?

What is the requirement to qualify for their cheap loans?

What is the comparison rate as well?
Edited by Tyson, 5 Jul 2017, 10:51 AM.
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Bardon
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Rufus
4 Jul 2017, 11:13 PM
That sounds about right, but that's for an owner occupier not an investment property. They are usually about 0.50% higher.
I was just about to ring up and my fire my broker until I read this.
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