Cash rate vs SVR - news.com.au article

[Spectre]

Hi
Just a quick note -
I recently found an interesting article put out by news.com.au - not sure if I saw it here to start with to be honest (I dont believe I did though).

Thought some of you might be interested in the charting of it if you havent seen it before.

http://www.news.com.au/money/nab-li...scraps-exit-fees/story-e6frfmci-1225952724603

 

[jonmardell]

In no way take this as me defending the major lenders but you have to look at the cost of funds rather then the rba cash rate. Lenders raise their funds from different sources and they all have different costs associated with them. At one point some lenders were complaining that their bond issue rollovers were more then what they were lending it out as!! But the average cost of funds was less so they adjusted their rates appropriately.