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Hiking rates for existing investors is opportunistic

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Julia Corderoy | 05 Aug 2015, 08:00 AM Agree 0
Hiking interest rates for existing investors is an opportunistic move by the banks which could have harmful consequences, claims a property investment association
  • Rob Syd | 05 Aug 2015, 08:44 AM Agree 0
    I think banks are taking an opportunity to cash in. They should not target existing investment loans. They should only charge the increase on new investment lending. Here's a thought - How about reducing profit to to share holders.
  • Allan Faint | 05 Aug 2015, 08:49 AM Agree 0
    Imagine thinking the banks would not use any opportunity to increase their already record profits. Only common sense to only increase rates in the hot areas. Why put the brakes on in the rest of the country and force landlords to increase the rents? Will only make it harder for those trying to save.
  • Frank | 05 Aug 2015, 09:06 AM Agree 0
    I agree Rob , APRA has given the power to the banks just like a owner when he releases the PITBULL's ..And once a PITBULL tastes 1st blood he won't want to stop .... Great work APRA on handling the situation I guess you must have invested heavily into bank shares the moment you unclicked the chains
  • SunnyCoastBroker | 05 Aug 2015, 09:32 AM Agree 0
    Perhaps the approach should be LVR based for both existing and new investment loans, i.e. up to 80% same rate as owner occupiers. After all, isn't this all about perceived risk, so how can higher rates when there is very minimal rsik be justified?
  • Kym Bailey | 05 Aug 2015, 09:47 AM Agree 0
    This is more complex than indicated and whilst it seems easy to "bank bash" and disregard the shareholders contribution of equity to the company, its not revealing the real issue which is bank balance sheet capitalisation.
    Banks have to retain reserves in case of runs (and thank heavens they were well capitalised in 2009). They have to raise capital to lend and this is multifaceted but includes from shareholders who, like any provider of capital expect to receive a return. If the returns are not adequate and shareholders walk away then the more expensive alternatives are ramped up and this costs borrowers more
    The main "crime" banks are guilty of is not explaining what is going on so the debate can at least be fully informed.
  • Larry | 05 Aug 2015, 09:52 AM Agree 0
    How arrogant are the banks to prefer their shareholders to their customers by introducing arbitrary retrospective interest increases on existing investment loans. Relying on general apathy - but would be great if customers voted with their feet!
  • simon | 05 Aug 2015, 10:30 AM Agree 0
    I'll conceived and no justification to raise rates on existing borrowers. I dont subscribe to the 'need for capital' theory - target new borrowers not old. Even IF you target existing borrowers why, in most cases, just target investors?
    APRA are a clueless power driven, ivory tower dwelling, out of touch, out of control....(i'm not a fan)
    Target problem areas including postcode restricted lending and for goodness sake tackle overseas investors who are distorting the market. All for responsible lending but not for irresponsible baffoons like APRA.
  • simon | 05 Aug 2015, 11:38 AM Agree 0
    I'll conceived and no justification to raise rates on existing borrowers. I dont subscribe to the 'need for capital' theory - target new borrowers not old. Even IF you target existing borrowers why, in most cases, just target investors?
    APRA are a clueless power driven, ivory tower dwelling, out of touch, out of control....(i'm not a fan)
    Target problem areas including postcode restricted lending and for goodness sake tackle overseas investors who are distorting the market. All for responsible lending but not for irresponsible baffoons like APRA.
  • Caroline Syd | 05 Aug 2015, 01:45 PM Agree 0
    I can agree with banks thinking that all investors from now on have to abide by their new rules, but existing customers who are investors - thats totally unfair, under the guise of helping the economy???
  • Steve McClure | 05 Aug 2015, 02:10 PM Agree 0
    The current measures are a mess. Lenders are making their changes based on their own portfolio mix, rather than a consistent approach for borrowers. Another problem is that investors have not adequately explored the merits of an investment property with pragmatic, unbiased advice.Perhaps there should be a consistent advice model considered for consumer education rather than a consumer just being sold to at every turn
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