Discussion in 'Markets & Economies' started by SilverDJ, Mar 16, 2017.
They are doing it to clamp down on strong growth. Ha ha ha ha ha
Why dont they just say no?
CBA stopped approving investment loans last month.
You just need a 10% cash deposit now:
If they actually refused all investment loans that would be huge red flag news.
Another raise. Westpac this time. Are the banks seeing something?
Looks to me like they just want to prevent existing borrowers changing to more advantageous terms. Most likely to stop people switching to fixed rate loans in the expectation of rising interest rates, I would suspect.
Borrowing costs are up after the US raised rates this week?
Aussie banks are really just an extension of US banks aren't they? There is a funky image floating around showing the ownership relationships between US and Aussie banks. Wonder if someone can find it.
That's likely, as I doubt many people were going fixed when they saw the rates continually dropping, and negative in other countries etc.
Why not just stop interest only investment loans.
If you can't afford to pay principal and interest, you have no business inflating the money supply we are all forced to use.
Oh OK, I'm on my first mortgage and I think we would have to but probably because of the structure of the loan, with three loans across two properties and two borrowers.
Should look into it again before it's too late, unless it already is Pretty sure our lender will raise rates again despite no change from the RBA. They did in January, 'just' 0.06% but without an increase in the official rate. Testing the waters I guess.
Commbank just tweeted that they are raising variable rate investment loans by 0.24% to 5.8% on 8th May
Interest only rates will also rise by 0.25% for both owner and investors.
Owner rates will rise only 0.03%
The low interest rate party seems to be over. It's only a matter of how fast and how much they'll rise....
They need to be careful not to pop the bubble for all those over-extended home owners. Investors are bearing the brunt of it for now....
Just my opinion call me cynical but I wouldn't be fixing a mortgage rate as it appears this is what they are trying to accomplish, get as many people to change to a fix mortgage in case bubble does pop.
Better to have someone fixed at 3% then a variable rate of 0.5% to 1%
Are you Bill Gates, where are you Getting fixed at 3% and variable at less than 1%?
Banks don't care if the loan is fixed or variable, when they foreclose you?
Austrian banks are small fry, if you fix your mortgage rates, they will acquire fix rates for you at wholesale rates.
Therefore if you have to pay a break fee so will the banks.
This is why Reserve Banks official rates are just a farce.
They're not exactly a farce, they're simply the rates you pay when you can't get a better one elsewhere.
If you're not getting your money from the RBA, it doesn't matter what the RBA is charging or whether "official" rates go up or down (something articles like this completely miss).
I have no pity for people who over-extended themselves on debt and get into trouble, home owners or otherwise. They could have bought cheaper but elected not to, their choice.
And before anyone craps on about average prices etc, most people are not forced to buy the home they are in at the price they paid, there is almost always a cheaper option in another (usually less desirable) location. But you know, everyone must be near that coffee shop they like
Who said IO is only for those who can't afford P&I? One of the smartest things anyone can do is go IO.
I'm interested to see your arguments on why you think this House....
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