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Westpac to give home loan customers a rate hike

Discussion in 'Finance & Banking' started by jeromanomic, 21st Oct, 2015.

  1. jeromanomic

    jeromanomic Active Member

    20th Jul, 2014
    Perth, WA
  2. Albertus Waldron

    Albertus Waldron Member

    13th Jul, 2012
    All four Majors have now increased rates

    The big Four have increased rate and St George and Mac Bank just announced as well.. If APRA are telling the truth though the smaller lenders should start having a real competitive advantage and we might actually get some real competition in the market place again.;)
  3. Ripe Wealth Creation

    Ripe Wealth Creation Member

    20th Nov, 2015
    The Fall guy...

    You shall see if you look back the banks take turns being the fall guy or fall bank in this case, one goes first and this was planned and calculated to show they do not need to stay in line with the RBA and can make the decision to change their rates when they feel like it, to which the others then followed after westpac took the heat. Next time it will CBA, then NAB etc they just share the pain around.

    If you are a owner occupier the changes by APRA have only made for a orchard of options and negotiation as they all vie for your business and give incentives (no package fees for life of loan, trips to paris, special rates, bonus frequent flyers etc) but something that investors especially those with large portfolios have to take into consideration is there portfolios are not the 'attraction" they used to be the banks are interested but half heartedly so, they have to keep their cash books in check and investment loans are just not what they are after. The main problem other than usual (rego fees, break fees, discharge fees, trust deeds that may need vetting etc) is that the LVR (loan to value ratios) are not being offered at the same rate on investment loans, so if you had 70-80% lending with your current bank you may only get 60-70% in comparison if you tried to move banks - so "love the one your with" has never been more accurate :) Not meaning you should put up with it but be careful when considering a move if you hold an investment property portfolio.

    Last edited by a moderator: 17th Sep, 2016