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Higher rates for investors the right thing, says major bank

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Australian Broker | 11 Sep 2015, 07:00 AM Agree 0
One of Australia’s biggest banks believes banks are doing the right thing by hitting investors with higher interest rates
  • Wozza | 11 Sep 2015, 09:09 AM Agree 0
    With the majority of investors negatively gearing their properties, surely this increase will have minimal impact on their bottom line ?
  • Peter Cooper | 11 Sep 2015, 09:43 AM Agree 0
    As a responsible lender, investment loans are now being assessed on a principal and interest basis at a much higher servicing rate. If the customer passes much tougher hurdles and the customer gives the bank additional security, why should they be penalized with a higher retail rate?

    If the customer is an existing customer with sound record of payment, why too are they also being penalized? If you are behind in your repayments you are charged a higher rate until it is returned to order! If they have concerns with certain demographic areas restrict loan to value ratios on those areas to 60/70% and put other areas on watch.

    If clients pass the tougher criteria they deserve the better rate. If the bank has concerns about their 10% restriction in regards their loan book, they should put their hand up and say they have reached their quota and concentrate on other areas for business growth (of which there are many, particularly in business, corporate lending, and financial planning)!!
  • Broker | 11 Sep 2015, 10:11 AM Agree 0
    What an absolute croc, I also note that Mr Slater did not comment on NAB's recent rate gauging of owner occupiers with interest only loans - due to NAB's out-dated IT systems...
  • Harold Spencer | 11 Sep 2015, 12:53 PM Agree 0
    The Donald Trump of Australian banking!
  • Antbroker | 12 Sep 2015, 01:44 PM Agree 0
    Surely Mr Slater has been misquoted, because he has not presented a rational reason why the all investors would present a higher risk than some owner-occupiers. All borrowers run the risk of losing their jobs and remaining unemployed, therefore not being able to meet their commitments and living expenses. Mr Investor may be more bankable than an owner-occupier as an investor can find a tenant that has a job who can pay his commitment. Mr Slater has made a very general statement with no substance.
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