Blood in the streets – investment lending

investment lending collapse

The prudential regulator has shaken the branches when it comes to investment lending in fact I haven’t seen this level of lender reaction since the GFC and maybe not even then.  Let’s look at the results so far lender by lender on investment lending only:

  • AMP have withdrawn completely from investment lending
  • ANZ increased rates on new and existing loans reduced LVR 90%
  • CBA increased assessment and interest rates on new and existing loans including fixed rate loans while tightening servicing
  • Heritage max lending 80% LVR
  • ING increase all interest rates reduced max 80% LVR  and tightened servicing
  • Macquarie increased rates on new and existing loans
  • NAB increased rates on new and existing loans
  • Suncorp something but too obscure to figure out what
  • Westpac reduced discounts and tightened servicing

As for the other lenders on panel – well nothing much has changed.  We can still get 95% investment loans on interest only and we can get interest rates as low as 4.04% variable and 4.29% fixed so the question is; how long can this situation last and how much damage will be done to  the lenders above?

Initial response from clients has been anger.  If the situation persists I can see some second tier lenders doing very, very nicely out of this.

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