CBA no longer providing notice of fixed rate moves

Interesting..................not like we havent been making any money of late :)



Removal of Advanced Notification Period for Home Loan Fixed Interest Rate Changes



Effective immediately, you will be notified of home loan fixed interest rate changes on the effective date of the change. We will no longer advise of fixed interest rate changes in advance.



Under the current practice, we are experiencing a spike in the volume of requests to switch to fixed rates or to rate lock a loan application in the period between notifying of a fixed interest rate change and the effective date of the change. This volume of business is often written at unsustainable margins due to the increased cost of funds.



We aim to provide our customers with the most competitive rates possible. This means that we make the decision to increase fixed rates only once our own costs of funds have already risen
 
The rates for today, and for today only are:

1 year – 5.69%
2 year – 6.54%
3 year – 7.14%
4 year – 7.59%
5 year – 7.79%

standard variable is currently 5.74%
 
That is really nice of them..isn't it?:p

I currently use CBA....they are great for getting loans processed quickly but their fixed rates are not very competitive.

Interesting..................not like we havent been making any money of late :)

Removal of Advanced Notification Period for Home Loan Fixed Interest Rate Changes

Effective immediately, you will be notified of home loan fixed interest rate changes on the effective date of the change. We will no longer advise of fixed interest rate changes in advance.

Under the current practice, we are experiencing a spike in the volume of requests to switch to fixed rates or to rate lock a loan application in the period between notifying of a fixed interest rate change and the effective date of the change. This volume of business is often written at unsustainable margins due to the increased cost of funds.

We aim to provide our customers with the most competitive rates possible. This means that we make the decision to increase fixed rates only once our own costs of funds have already risen
 
risk? their deposits have a govt gaurantee, the economy is strong and they have a near market monopoly. Cry me a river - the ones I feel for are the likes of BP, Qantas, wollies... let's pass the hat around
 
Contractually we all have so much to learn off them. They are past masters of clauses most investors don't even know exist.
 
I always thought it was fairly generous of them to give you a day or two's warning to fix at the old rate before they changed. Oh well.
 
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