ING and MY Rate ( who are one and the same) have just withdrawn all redraw facilities on their home loans. I was told 18 months ago this is what would happen eventually along with the end or severe restriction of LOCs and and cancellation of low doc loans.
Considering Australia is supposedly doing ok recession wise, this is an ominous sign.
ING, I am guessing has considerable exposure in the European market and that coupled with the probability of a bubble burst in the Chinese real estate markets, there are dark clouds ahead for the resources situation in Australia.
With all this talk of the resources sector being so darn rich and us John and Mary Citizens deserving a piece of the action as our god given right, we may be forgetting that it is the resources sector alone ( plus some stupid government manipulation) that has held our markets together and of course our economy as a whole.
My question, therefore, is what can ING see that our politicians and maybe a few property investors, do not?
Your thoughts would be appreciated.
Bankwest just sent a notice around saying they were increasing their LVRs from 85% back to 90% for new clients. ANZ also recently increased their LVRS too I think.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
After all the warnings if you are still dumb enough to go with a non bank, regional bank overseas bank to skimp on rate or because you think price is the number 1 issue; more fool you…
It’s not so much about risk – it about not having the funds if everyone redraws. At least not at th same cost of funds.
We have 4 strong lenders in Australia. Even that is debatable when you look at NAB and their profitability on loans written currently versus CBA. Westpac is also struggling due to high cost of funds.
Weve heard these storeys over and over again.
Stray away from the majors – but don’t complain!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
