ANZ cuts rates by 25 basis

[tcocaro]

I find this more comforting news than the FHOG announcement. Nobody asked for it and in my view shows 2 things, 1) competition between banks is still there and 2) shows the credit squeeze and their cost of funds are dropping (atleast locally)

http://www.news.com.au/business/story/0,27753,24510957-462,00.html

 

[urchin]

I find this more comforting news than the FHOG announcement. Nobody asked for it and in my view shows 2 things, 1) competition between banks is still there and 2) shows the credit squeeze and their cost of funds are dropping (atleast locally)

http://www.news.com.au/business/story/0,27753,24510957-462,00.html

it also shows that people aren't exactly beating down the doors trying to get loans..

 

[tcocaro]

sigh.... ok mate... true i agree its bad news shows were heading for 40% price drops.. just like the residex stats for the last qtr growth figures average -1% falls across all states? yep i agree we are heading for oblivion.

it also shows that people aren't exactly beating down the doors trying to get loans..

 

[Qlds007]

Anz Bank cuts variable rate by 25bhps

Good to hear that Anz Bank has announced this afternoon as a result of an easing in credit markets they have reduced their variable interest rate by a further 0.25% with effect from 28th October 2008.

No doubt the other majors will follow suit over the weekend.

 

[agent007]

it also shows that people aren't exactly beating down the doors trying to get loans..

IMO the last thing we need is a property boom. That would be the begining of the end

 

[letiha]

So this is on top of the 0.8% last week.
Nice....lets hope the NAB follows

 

[Qlds007]

Yes on top of the 0.8% from last week.

Considering they all increased the variable rate by 0.75% above the RBA cash rate on the way up just makes the rate 0.5% too high.

Still step in the right direction.

 

[letiha]

Fingures cross the others follow, that will mean out interest is back down to 7.71 getting closer to what it was when we took out the loans last March.

We went from 7.35 up to 9.01%, whilst we weren't under any stress with borrowings over 1 mil it does make a huge difference.

 

[Qlds007]

Yes it is a nice reduction.

I have well over a Million in borrowings but rents have risen so dramtically all is good and nicely + cashflow positive.

 

[kissfan]

they have reduced their variable interest rate by a further 0.25% with effect from 28th October 2008.

Very nice.

Will be interesting to see when the RBA meet next month, if they (RBA) drop rates by say 0.75% (or whatever), if the banks pass on the full cut or they factor this 0.25% into in.

Time wil tell I suppose.

Regards
Marty

 

[Diamond-Finance]

Very nice.

Will be interesting to see when the RBA meet next month, if they (RBA) drop rates by say 0.75% (or whatever), if the banks pass on the full cut or they factor this 0.25% into in.

Time wil tell I suppose.

Regards
Marty

The ANZ are saying that due to a global easing on the funds which has to do with the variable portion of their costings after the cash rate and their own cost margin.

I believe that the banks are now going to go on a strong offensive towards getting back all of the non bank lenders market share. The non banks are not going to be in the same position so it will be a great opportunity for them to capitalise on this.

 

[Bandita]

Yes on top of the 0.8% from last week.

Considering they all increased the variable rate by 0.75% above the RBA cash rate on the way up just makes the rate 0.5% too high.

Still step in the right direction.

Yippee!!

 

[Nathan]

who reckons the other 4 will follow?

 

[Token Funder]

I believe that the banks are now going to go on a strong offensive towards getting back all of the non bank lenders market share. The non banks are not going to be in the same position so it will be a great opportunity for them to capitalise on this.

My suspicion as well.

Rudd is offering to buy up to $4B in non-bank RMBS which may give them a bit of a life line after they had pretty well been written off.

Non-banks drove competition in this country over the last 15 years so it is in the major banks' interests long term that they stay on the canvas.

 

[joe jo jo]

it also shows that people aren't exactly beating down the doors trying to get loans..

Hi Urchin,

ANZ are flat out at the moment. Beyond capicity from where I work, so that may not be the case as you suggest. My bet is they have sourced cheaper funds from elsewhere. I think people are forgetting there is still money out there.

 

[fernfurn]

From what I understand, the saving deposits have gone through the roof, and the borrowings have dropped dead - result, bank not operating as it should. Anyone else heard the rumour NAB are talking about taking over ANZ

 

[Qlds007]

Your kidding me.

Anz are seeing a massive increase in home loans volumes due to the issues with non bank lenders. Processing times have blown out and their credit team are under pressure to keep up with the numbers.

NAB have their own issues in the UK with the wonderful over priced acquisitions.

 

[Alex P Keaton]

From what I understand, the saving deposits have gone through the roof, and the borrowings have dropped dead - result, bank not operating as it should. Anyone else heard the rumour NAB are talking about taking over ANZ

Your kidding. I thought ANZ was really strong

 

[mystery]

Your kidding me.

Anz are seeing a massive increase in home loans volumes due to the issues with non bank lenders. Processing times have blown out and their credit team are under pressure to keep up with the numbers.

NAB have their own issues in the UK with the wonderful over priced acquisitions.

Funny you should mention ANZ and processing times, ..... We refinanced an IP about 3 months ago now. Whereas previously it would have gone through very quickly, ... they made us have 2 x Valuation by the same valuer (1 x drive-by and 1 x internal inspection) and then when it proved the value had gone up it took another 8-10 weeks for all the paperwork to appear and the deal completed and this was through our reliable MB.

About 4 weeks ago ANZ sent us 2 x movie tickets as an apology for the delay, ..... geez, you'd think with the money they make from us in interest payments they'd be able to manage more than that.

Martin .....

 

[LynnH]

Anyone else heard the rumour NAB are talking about taking over ANZ

Since these banks are two of the Four Pillars, I cannot see any proposed takeover gaining Government approval.

Cheers
LynnH