They'll be starting to annoy the other banks.
http://business.smh.com.au/business/anz-cuts-rates-again-20080911-4efz.html
http://business.smh.com.au/business/anz-cuts-rates-again-20080911-4efz.html
ANZ are dropping fixed rates again
- Thread starter depreciator
- Start date
HAD a thought the other day! yes just one!
if ANZ announced the boom of the centry stuff, wouldn't it be in their best interest to secure as much bussines as possible, ie if you scraped in with say 76% on a lvr of 75%
shurly they would still do the buissiness, and buy droping the rates as per today, this should compell other banks to do the same?therefore taking the lead role before the RBA does! mmmmm?
if ANZ announced the boom of the centry stuff, wouldn't it be in their best interest to secure as much bussines as possible, ie if you scraped in with say 76% on a lvr of 75%
shurly they would still do the buissiness, and buy droping the rates as per today, this should compell other banks to do the same?therefore taking the lead role before the RBA does! mmmmm?
Hiya
Comm have dropped theirs too
Its got nothing to do with the banks per se.
The fact is they can now buy that middle and long term money cheaper, as super funds and the like want to secure their returns in what may be a market where cash returns may become much lower.
Competative pressure then does the rest
ta
rolf
Comm have dropped theirs too
Its got nothing to do with the banks per se.
The fact is they can now buy that middle and long term money cheaper, as super funds and the like want to secure their returns in what may be a market where cash returns may become much lower.
Competative pressure then does the rest
ta
rolf
BankWest are dropping everything except all those loans that make a difference to me.
i.e variable rate and LOC remain unchanged since July.
GRRR.
i.e variable rate and LOC remain unchanged since July.
GRRR.
i always thought that fixed interested rates don't change for the life of fixed period. So i don't see why would they drop for existing customers.
i always thought that fixed interested rates don't change for the life of fixed period. So i don't see why would they drop for existing customers.
It's called refinancing.
.....and trying to attract customers to their bank instead of going to another bank by offering lower rates.
typical marketing ploy.
It's called refinancing.
.....and trying to attract customers to their bank instead of going to another bank by offering lower rates.
typical marketing ploy.
Yep,
Lots of people are refinancing from other banks at the moment to One Direct. (Subsidiary of ANZ) Very cheap rates. Dropping again next week
Regards Jason.
i doubt that existing customers would want to refinance
Really? Because the percentage of loans that are for refinancing (rather than new purchases) is around 40% of all loans..... meaning 40% of loan holders refinancing every day.
Wouldn't they be all refinanced in two and a half days then? Must be those new one day loans (maybe Cash Converters)
Cheers
Shane
my reasoning is that most of existing customers who fixed their rates before last two IR increases would be still benefiting from lower rates. Out of those people who fixed after that most will spend more on refinancing costs, than they will save.
but fixed term loans expire every day so people HAVE to refinance if they want to continue on fixed....... and the refinancing costs when you are out of your fixed term are just loan establishment fees, so you WOULD save if you refinanced to a lower rate of even -0.2%.
the percentage of loans that are refinance loans is still 40%.
and 50% of ALL loans are fixed.
Hi Strannik,
People who did fix before the last two rate increases would currently be benefiting from their lower fixed rates. However if rates drop again then they may not be!
In some cases it can be worth the refinancing costs to go onto lower rates. My wife had a customer refinance today. He has loans of over 1Mil and his break fees were around $18,000. My wife calculated that he will have recouped this amount of money after one year, allowing for the lower repayments on the new (lower) interest rate. Refinancing from fixed rates can be worthwhile but it depends on an individual's situation.
Regards Jason.
I doubt that offer will still be valid by then.
I'm not arguing against refinance of fixed loans, i'm merely saying that most of the existing ANZ customers with fixed rate loans wouldn't benefit from 0.2 % decrease anyway.
Speaking of your wife's customer, wouldn't he be better off waiting half a year for another interest rate drop and possibly decreasing his breakaway fees in the mean time?
