BREAKING NEWS - As I type this, Bankwest have just communicated that they have pulled back their investment lending to a maximum of 80%... effective from tomorrow!! Big news.
BREAKING NEWS - Bankwest reduces LVR to 80% for IPs
- Thread starter Colin Rice
- Start date
thanks god for that
another good reason to avoid the spoonerism
ta
rolf
another good reason to avoid the spoonerism
ta
rolf
Had to google that one.
They will love that
I got lazy and emailed. Not too annoying given most people opinions of BankWest, was hoping to have some higher lending to get a better rate. Oh well as long as some bank will have me.
If you're planning on building an investment portfolio over time, BankWest is the wrong lender to be using due to terrible affordability models.
If you're looking for cheap rates, odds are BankWest may look good, but will cost you more in the long run. They constantly recycle products and policy (on about a 2 year basis) which costs most people significantly more than the initial rate savings. This policy change is a prime example of this behaviour.
Brokers that recommend BankWest usually either have little long term experience with them, or are selling purely based on rates, without real regard to clients longer term needs.
Is Adelaide a part of the world?
Yep - that was the only reason I ever used them.
It's quite a dramatic change - going from uncapped LMI on 95% lends (so up to 99% loans) down to 80%
Personally - it doesn't bother me at all (never used them much to begin with) but it seems silly. They're going to lose market share - especially when existing clients want to purchase an IP above 80% - they'll be taking their business elsewhere.
Cheers
Jamie
20% of the market share in WA (wait a while) is Bankwest so 1 in 5 are with them and most are happy to/want to remain. May not have a choice now.
Like most things me thinks there is more to this decision than meets the eye?
That is about their only niche. Fortunately not something I've had to do in a very long time.
Up until about mid 2008 I did write a lot of BankWest. They used to be quite competitive overall. Things got a bit dicey for them overseas (they were owned by the Bank Of Scotland back then) and they went bad almost overnight. They've never adequately recovered IMO.
Even before then, another broker here used to tell me off for dealing with them based on even longer term experiences. Turns out he was right (as RL is in most things).
I'm sure it will but it's what happens in the meantime that will be very interesting to watch...
Not to mention how long it takes to pass!
was in bankwest the other day and the teller was pitching everything under the sun... I told her upfront that their transactional banking is quite good but that is all they are good for, the mortgages are ridiculous. Have wasted my time with them twice now. the second time they made me jump thru hoops for about 6 weeks on a house and land deal before the person I was dealing with came back and said - I think it was - oh sorry we aren't lending on vacant land - or similar. So yeh, thanks that's probably something you could have mentioned before I went thru this process. The first time they lent me money for the land that had a 24 month development covenant in it, so I went back and said ok here are my plans, ready to go now. And they say no, only lending for the land! great.
Amazing call.
