Yep, fair enough. It's been so long since ING even did lo doc I can hardly remember them.
April's RBA Board Rate Cut Announced: 0.25%
- Thread starter Rixter
- Start date
Yep, fair enough. It's been so long since ING even did lo doc I can hardly remember them.
Where do you get this idea from Rixter?
From what I have seen fixed rates are static to slowly falling still.
well, with the banks not passing the cut in full, many of the $900 stimulus cheques will be going to the banks to pay interest.
IMHO not any more.
I don't believe this is so, haven't seen any fixed interest rates up again.
More importantly what was the time frame between the last rate cut and the first mortgage rate rise as the banks may have beaten the RBA to the punch on the way back up...
Give it within the current quarter for further banks to increase is my belief.
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That's incorrect.
Bankwest have increased their 3-5 year rates twice in the last one month.
Other notable banks are yet to INCREASE, but ANY INCREASE in these rates from another bank and you would have to wonder whether the upturn has begun in fixed rates...
I'm not celebrating these variable cuts at all, but getting rather nervous about the fixed rates instead!
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You might be on to something there Rixter.
Still being bearish on global financial fundamentals myself, I believe there's a chance global credit flows could tighten this year, if not seize up as they did last year. blame whatever you will
- defaults by Eastern Europe or credit cards
- banks reducing lending in an effort to get their balance sheets cleaned up
- Japan having to use their surplus for domestic stimulus therefore no carry trade.
From what I have heard recently, Aussie lenders still rely on 20-30% of their funds from foreign wholesale.
Gail Kelly said a few days ago foreign wholesale was more expensive than ever before...................Go figure.....
"Mrs Kelly said the banks were paying more for deposits"
well this is clearly BS.
well this is clearly BS.
ok stupid question time... the effect of foreign wholesale funds would be the same as just printing money in Aus, so why doesn't the RBA just lend the money to the banks at a much lower rate and save all that interest cover flowing out to foreigners?
cos for the time being, Kevin Rude prefers to give away national surplus and income from future productivity for :
- free plasmas
- free gimme's directly to fhob's.
- a State funded world best fat internet pipe, which will most likely be outdated by the time it is finished and no one will be able to afford it anyways.
all so Labor can look like they are doing something concrete and easily understood by a financially illiterate electorate.
anyway, don't write off Rudey yet. He may still get the quantitative easing printing presses runnin and hock the mulah to the banks.
Maybe what she meant is interest paid on deposits hasn't dropped at the same rate as drops in mortgage interest......for what purpose? maybe to stem the flow of cash back into the stock market, or property, or just plain meeting the cost of living.
from the link above...
"Westpac's chief executive, Gail Kelly, was the most vocal, saying the banks' room to move was constrained by the continuing high cost of raising new debt from international credit markets to replace existing funding.
She also claimed that a need to keep offering high interest rates on deposit accounts to maintain the flow of money from customers was eating into their margins and increasing the costs they are having to shoulder.
Deposits now make up at least 50 per cent of all the banks' funding requirements"
ANZ Reduces interest rates by...
0.10%......
0.10%......
In the US - rates are close to 0.25%
But if you look at (for example) the US Version of INGs website, their rates are at 4.50
http://www.ingdirect.com/tb/index.html
Not saying this is 100% accurate in comparison to Oz
But when I was there 2 months ago, my parents loan is at 6.6%
But my more interesting query is say hypothetically, if the cash rate went to 0.25% here what would the banks then charge
Noting as well its not the Oz cash rate you should be basing the interest rates on
But if you look at (for example) the US Version of INGs website, their rates are at 4.50
http://www.ingdirect.com/tb/index.html
Not saying this is 100% accurate in comparison to Oz
But when I was there 2 months ago, my parents loan is at 6.6%
But my more interesting query is say hypothetically, if the cash rate went to 0.25% here what would the banks then charge
Noting as well its not the Oz cash rate you should be basing the interest rates on
For all you people complaining that the banks are not passing on the full 25 basis points, be my guest.
Why dont you sell your properties, and then lend out your money at the rate you expect the banks to lend at!!!!!. OR if you dont like that strategy, then DONT BORROW FROM THEM. Go and refinance from someone else, i am sure the traditional Solicitor lending rates will be much more competitive!!!!
Why dont you sell your properties, and then lend out your money at the rate you expect the banks to lend at!!!!!. OR if you dont like that strategy, then DONT BORROW FROM THEM. Go and refinance from someone else, i am sure the traditional Solicitor lending rates will be much more competitive!!!!
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ok - give me a banking licence, you give me $1m cash and I will pay you 1% then I will lend out $10m and charge 10%, all backed by 70% LVR first mortgage. no brainer
So then set up a finance company, try to get deposits and then on lend it if its so easy.
I never said it was easy and you were the one that suggested we should all go off and set up banks.
as a general concept tho, what better business can there be than lending out fictional money?
as a general concept tho, what better business can there be than lending out fictional money?
