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Major banks remove investor loan discounts offered to brokers

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Australian Broker | 22 May 2015, 08:25 AM Agree 0
Major banks withdraw discounts extended to brokers on property investment loans in response to fears about an over-heated property market and risky lending standards
  • Mick | 22 May 2015, 08:47 AM Agree 0
    As long as the same applies through the branch network
  • GC Broker | 22 May 2015, 08:49 AM Agree 0
    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!
  • Brado | 22 May 2015, 09:07 AM Agree 0
    All that this is achieving is stopping new investors getting into the market, whilst helping wealthy people to continue to invest with less competition...
  • Tom | 22 May 2015, 09:19 AM Agree 0
    all of which will add nicely to their bottom line. that said, brokers should also get paid more for investor loans due to the increased profit margin for the banks.
  • Craig Budden | 22 May 2015, 09:32 AM Agree 0
    Sounds like a lot of hot air. Does anyone honestly believe that a $1,000 rebate is driving some kind of 'investment frenzy'? Is someone contemplating buying a $400K investment property going to be swayed in or out of the market via a $1K offer? Really?!
    As for "risky lending standards", whose are they talking about? Their own lending criteria or that of the broker, who's bound & gagged by NCCP?
    With rates probably as low as they're going to go, if ASIC, the banks, or anyone else were going to be concerned about the quality of banks loan books, shouldn't they have started worrying a long time ago?
  • Elena | 22 May 2015, 09:35 AM Agree 0
    APRA coming down hard on all the banks. The banks no doubt though seeing an opportunity to claw back some margin!
  • Regional broker | 22 May 2015, 09:45 AM Agree 0
    Catch up guys this has been going on for at least 2 weeks, when margins get lower what do we expect !
  • David | 22 May 2015, 10:12 AM Agree 0
    Time to check out the non banks and mortgage managers, they are not regulated by APRA and will now offer a far better package for Investors...
  • Terry Mc | 22 May 2015, 10:48 AM Agree 0
    Perhaps if they re-introduced the first home owner grant for 'established homes' and not brand new ones which is the policy in Qld anyway it would direct those first time property owners away from the investment market and back into the owner occupied arena which would also have some desired effect in taking heat out of the 'investment' market . I believe we are at or close to the lowest % take up of owner occupied homes by first time buyers since at least 2000 when these grants were established . We wouldn't even then need intervention from the banks to change interest rate pricing discretions for OO vs Inv.
  • Ray Perth | 24 May 2015, 01:59 PM Agree 0
    This will effect the non bank lenders as many get their funds from bank issued bonds which have same impediments from APRA.
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