Banks Raise Rates - What changes...

tomleonhart on 28/07/2015 - 08:49
Last edited 28/07/2015 - 08:59

Hi guys,

As some of you are aware, banks are raising interest rate for investors / interest only to dampen the rise of property prices. I thought I'll collate the updates here in this thread.

Note: This list only covers changes that affect existing loans and variable rates.

  • ANZ raised its SVR for investment loan by 0.27%. (Effective from 10 August).
  • CBA raised its SVR for investment loan by 0.27% percentage points. (Effective from 10 August).
  • NAB raised rates on their Interest Only loan by 0.29%. This change potentially affects both OO and Investment loan.
  • Westpac- Well. Apparently this happens. We wait and see.

What about your lenders? Have you heard back from them yet?

Financial

Comments

  • fillit on 28/07/2015 - 15:28

    Whilst it's unfortunate that the big 4 has raised their interest rates, you shouldn't be investing if a rise of 0.27-0.29% becomes a financial concern as it was to happen sooner or later. The real concern is restrictions on LVR where some banks are only doing 70%.

  • usmanyousaf on 28/07/2015 - 21:07

    i am in a process of signing loan documents with bank of melbourne @ 4.19

  • Peck on 28/07/2015 - 23:23

    Without knowing the actual terms, I thought that it was due to the Government tightening up on the banks, requiring them to hold onto more funds etc. to reduce the risk profile on their lending on investment properties, and one result was going to be that the banks would not be as profitable. Therefore they will have to charge more for funds and/or reduce dividends.

    • fillit on 29/07/2015 - 12:50

      Not quite, that was the story a few months ago, this is to slow down their growth in investment loans.

    • sagax on 30/07/2015 - 21:55

      I thought APRA, who changed the investment loan rules, was independent of the Government.

      I'm not a fan of Abbott et al, but I don't think this is their doing.

  • arislan on 29/07/2015 - 15:53

    Did the government actually commission some sort of survey that indicated the investment bubble was primarily caused by residents taking investment only loans? Otherwise this is just another dog and pony show from Abbot et el. If the primary segment contributing to this is foreign investors, this move is just punishing australians for nothing.

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