Bank Interest Rates

[jazzlobber]

Hey,

Bank interest rates have come down last week to 3.25% from the RBA,

but still my bank ANZ has not passed it on.

My main comment here is that we are currently paying 6.21% which should move to 5.21% whenever they get their as* into gear.

We also run off a ANZ breakfree package with an extra 0.7 reduction of the standard variable.

So we will have

5.21 - 3.25 = 1.96%

This is almost 2% markup for want of a better word.

Indeed if we were to pay the standard variable say of 5.21+0.7 = 5.91% when it eventually gets there.

the markup over RBA is 5.91 - 3.25 = 2.66%, which to me seems high,

i would expect it to be in the 1.5% region to be reasonable.

anyone know of any loans with smaller markup over RBA, compare to standard variable for example?

if i can find a better deal i should try moving my loans some place else

thanks for reading and have a good day

 

[boomtown]

i would expect it to be in the 1.5% region to be reasonable.

I think you will find that 1.5% would be extremely low on a historical basis.

 

[Token Funder]

I think you will find that 1.5% would be extremely low on a historical basis.

..and to add the usual comment, the overnight cash rate is not the cost of funds for a lender.

 

[buzzlightyear]

My main comment here is that we are currently paying 6.21% which should move to 5.21% whenever they get their as* into gear.

Its already been announced. Here's a news link.

 

[Propertunity]

i would expect it to be in the 1.5% region to be reasonable.

That was the margin when there were lots of non-bank lenders in the marketplace.

Now that they are being bought up by the banks - RAMS, Aussie etc., or simply closing their resi loan books - Macq Bank, Mobius, etc., surprise, surprise the margin is increasing

 

[jazzlobber]

That was the margin when there were lots of non-bank lenders in the marketplace.

Now that they are being bought up by the banks - RAMS, Aussie etc., or simply closing their resi loan books - Macq Bank, Mobius, etc., surprise, surprise the margin is increasing

Yes, less competition means more cartel behaviour the banks dont have to try as hard as the small outfits.

Also the main banks added small increases here and there on the way up themselves, 0.15% 0.25% outside of the RBA but haven't given them back and haven't balanced,

it seems unfair that the RBA is 3.25 and the banks standard variable is almost double 5.91%