Bankwest Looking for rate for risk

E ffective Saturday 8 May 2010

With the need to evolve and adapt to the current market challenges and a rising interest rate environment, we've undertaken a review of our LVR to ensure we continue to lend responsibly.
In consideration of this, Bankwest are reducing the threshold for offering all products to new customers from 90% to 85% LVR.

We will continue to lend up to 95% for new to bank customers, however all lending over 85% LVR for new customers must be put through on Mortgage Shredder Standard Variable Product only, however for existing customers our lending policies and product offerings remain unchanged, with availability to borrow up to 95% LVR.



Seems a little conflicting there. trying to ascertain if they mean 85 For new folks only ( as for eg wbc).

Suspect its max 85 % for newbies , back soon, and if you want more than 85 % with Bankworst, get your apps in folks

ta
rolf
 
Bankworst and their bigger brethren Witch Bank.....have decide to close up shop to lending......definitely not where I am going these days for my finance.

I prefer CUA....nice people to deal with for the moment.;)

E ffective Saturday 8 May 2010

With the need to evolve and adapt to the current market challenges and a rising interest rate environment, we've undertaken a review of our LVR to ensure we continue to lend responsibly.
In consideration of this, Bankwest are reducing the threshold for offering all products to new customers from 90% to 85% LVR.

We will continue to lend up to 95% for new to bank customers, however all lending over 85% LVR for new customers must be put through on Mortgage Shredder Standard Variable Product only, however for existing customers our lending policies and product offerings remain unchanged, with availability to borrow up to 95% LVR.



Seems a little conflicting there. trying to ascertain if they mean 85 For new folks only ( as for eg wbc).

Suspect its max 85 % for newbies , back soon, and if you want more than 85 % with Bankworst, get your apps in folks

ta
rolf
 
CBA & Westpac have gouged too much of the market over the last two years. It appears they've pushed beyond their own sustainable limits and are trying to push business away. Their rates are the highest of the majors and these policies suggest they're trying to only take the better pickings whilst maintaining existing customers.

On the other hand ANZ & NAB are trying to get market share back. They're doing what they can to be competitive in their pricing and are lossening up their requirements. ANZ have lifted their LVRs and I got some inside goss that NAB are relaxing their documentation requirements in the near future.

That's my take on it.
 
could it mean that they will price this product accordingly higher.
ie risk vs return.
In other words, this product will be available but the interest rate will be higher.
If you want the lower interest rate product you need the lower LVR.
 
We might all not be happy with the moves westpac and CBA are taking but looking at it from their point of view, they now own a massive segment of the home loans market and as far as i am aware that has not stopped, all they are doing is saying we will take the 'safer' applicants and chuck the rest out, in a rising rate environment that seems to make sense?
 
could it mean that they will price this product accordingly higher.
ie risk vs return.
In other words, this product will be available but the interest rate will be higher.
If you want the lower interest rate product you need the lower LVR.

yes newbies can go upto 95% but they pay the higher rate on this product (Mortgage Shredder) already and they may even push it higher, price for risk is the new black
 
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