Major banks remove investor loan discounts offered to brokers

by Julia Corderoy22 May 2015
Lenders have been withdrawing discounts and other special offers extended to brokers on property investment loans in response to fears about an over-heated property market and risky lending standards.

In email correspondence obtained by Australian Broker, two of the major banks outline changes made to the pricing discounts available to standard variable rate and fixed rate investment loans.

In an announcement made by Commonwealth Bank, the major says it has reviewed its $1,000 Investment Home Loan Rebate Offer.

“We will honour the offer for all Investment Home Loan applications, created by close of business on Friday 15 May,” the email read.

Further, it announced reduced pricing discounts offered on investor loans.

“We have reduced pricing discounts for Investment Home Loans in the Home Loan Pricing Tool (HLPT),” the major said.

“We will honour pricing discounts approved by the HLPT as at close of business on Wednesday 13 May 2015, providing the application is formally approved by June 12 2015.”

The major then states that “heavier discounts very much remain available for Owner Occupied lending”.

In more email correspondence obtained by Australian Broker from ANZ, head of third party relationship channels, Kieran Evans says ANZ is carefully managing its home loan business to ensure its portfolio grows in a balanced way.

“As a result, we will be introducing a range of changes to how we manage investor lending effective immediately,” he said.

For customers with investor only lending, ANZ will only offer advertised rates – discretionary pricing will be not be available, the major said. However, for customers with existing owner occupier lending with ANZ, the major will offer discretionary pricing on investor loans.

Further, to offset the removal of investor switching discretions, Evans said ANZ have increased the owner occupier discretion to $1,200 and have reduced the eligibility to greater than $500,000.

“Rest assured we will continue to support you and your customers in the owner occupied segment,” Evans concluded.
 

COMMENTS

  • by Mick 22/05/2015 8:47:01 AM

    As long as the same applies through the branch network

  • by GC Broker 22/05/2015 8:49:00 AM

    Hilarious aren't they (the banks)? They have been offering us all kinds of monetary incentives, huge rate discounts, high LVR's with capped LMI etc for investor loans and then BAM! suddenly our email inbox overflows with various lenders all drastically changing the investment loan LVR's, rates, servicing calculator loadings etc!

  • by Brado 22/05/2015 9:07:12 AM

    All that this is achieving is stopping new investors getting into the market, whilst helping wealthy people to continue to invest with less competition...