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Major bank ups investor rates, cuts owner occupier rates

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Julia Corderoy | 04 Aug 2015, 06:23 AM Agree 0
A major lender lender has increased rates in investor loans and decreased rates on owner-occupier loans
  • GC | 04 Aug 2015, 12:09 PM Agree 0
    Are the reductions for owner occupied loans going to be automatically given to existing customers? Doubt it.

    APRA , the Govt and particularly the banks should all hang their heads in shame.
    They have all shown absolute disdain for the general public - not just investors.
    APRA have used a sledge hammer approach to try to show they can control a market they cant possibly control - a market that will continue its typical cycle. The Govt has started this whole train in motion and have clearly NOT listened to the right people.

    The banks have shown how greedy they are and are trying to buy public favour by stating they will reduce O/O loans (future loans only). They are sitting in their offices rubbing their hand together thinking the GOOD TIMES ARE BACK - greed IS good.

    One thing that concerns me is that APRA clearly haven't given any thought to. Their focus is to reign in property growth and valuations - as they clearly believe we are in a "BUBBLE". What happens to the debt / equity ratios with the banks? Will their actions inadvertently leave us with a USA scenario where we end up with negative equity in our property?

    At the end of the day I doubt this whole exercise will make that much of a difference. Investors will sit back, re-assess and continue to invest in their chosen vehicle.
    Interest Rates are only part of the investing picture. I remember the days thing any rate below 7% was great - and I made money on property even then.

    We invest in property for the long term and nothing APRA do will (hopefully) stop property from increasing in value. I say to all investors - take stock and get out their and keep doing what you have been doing. It's your retirement you are working for not APRA's.
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