CBA raises variable rates by 0.45%

Another 0.2% in addition to the RBA increase of 0.25%.

I know the media run alarmist stories about rate rises but a 0.45% interest rate rise in one hit may hurt a few borrowers (those who have borrowed at lower variable rates and are now close to max. serviceability and have not yet fixed).

Borrowers with an 80% lvr loan on say a 600k property in Sydney who owe 480 at variable rates will be paying an additional $180/month ($2160/year).

From Commbank's internet banking site:-

"Home Loan Rate Change
We announced today that following the Reserve Bank's decision to increase the cash rate by 0.25% pa and continued increases in our funding costs, we are lifting our variable rate home loan interest rates by 0.45% pa, effective Friday 5 November 2010.

Please check the 'Account Information' tab from Saturday 6 November and select your home loan to confirm your new interest rate including any interest rate concession.

Visit www.commbank.com.au/rates for more information.

If your repayments need to increase, we'll send you a home loan statement with a letter outlining the new minimum repayment and the date this takes effect with at least one month's notice.

If you would like to review your own repayments before then, you can now use the Home Loan calculator on the 'Account Information' tab. You can also amend your repayment amount, frequency and date via the 'Manage Accounts' tab."
 
Quoted from CBA extract:.....Please check the 'Account Information' tab from Saturday 6 November and select your home loan to confirm your new interest rate including any interest rate concession.

Oh yeah...I can't wait to check my new interest rate....I'm so excited...LOL!
 
Im with the CBA and this has forced me to two things...increase rents for 2 of the 3 properties (Thanks CBA!) and also look at an alternative bank.

I'm not angry at them, they have to do what they think is right, but it does have flow-on effects. My tenants will now pay 10 - 20 dollars extra per week.

I wonder how this will affect the property market. I got the feeling we were edging towards the brink of what ppl could afford....
 
I got the feeling we were edging towards the brink of what ppl could afford....

Most home owners currently pay more in mortgage repayments than rent of the same property, therefore it makes sense that tenants can afford to pay more as well.
Unfortunately they might have to stay somewhere cheaper than Palazzo Versace on their next holiday or might even have to put off getting that next tattoo or the new purple maloo ute.
 
im with CBA for last 2 years..have to look for other banks/non-bank as well...any one has suggestions...also looking for good mortage broker.......
 
Agree Daniel....and if so then rates should be coming back down again soon...

But right now we are all supposed to be making a motza and spending uncontrollably causing inflation....???

I gotta agree that prices of things have risen dramatically...like electricity, rates, insurances, food etc...you know..the necessities....but really, do we have a choice with these items...? Are the people targeted with interest rates the cause of these things getting out of hand...?

I'd like to know...
 
Im with the CBA and this has forced me to two things...increase rents for 2 of the 3 properties (Thanks CBA!) and also look at an alternative bank.

Your tenants aren't signatories to your mortgage documents. Your LVRs have nothing to do with them.
 
Ah yea nothing wrong with banks increasing rates. They're just doing business.

Unfortunately the world (at least in Australia) is not very balanced. When we try to do our business and increase rents, these unions and tribunals are all over us. But when the banks increase the rates, where are the unions and tribunals?

This is what I call 'cowardly tall poppy syndrome' which typifies this place (ie go for the middle-class, slightly well-off person who can't defend themselves but hide behind the little closet when the real sharks come out)
 
My tenants will now pay 10 - 20 dollars extra per week.

are you sure... have you asked them? many tenants will up stumps over $5 a week. And if your tenants are so price insensitive why haven't you already increased their rent? what is their breaking point?
 
im with CBA for last 2 years..have to look for other banks/non-bank as well...any one has suggestions...also looking for good mortage broker.......

It will be interesting to see nab's response they are hungry for market share (more so than cba and westpac) but will they be able to resist?

My advice would be to wait at least 2 weeks to see what the others do. Happy to review for you but as you are only 2 years into your loans the early payouts might make a switch prohibitive.

Cheers
 
Same as you Ajax - here's the message I found when logging into NetBank tonight. Annoying.
 

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I don't normally engage in bank bashing, so let me qualify this post with 2 statements:

1. I own CBA shares
2. I don't have a mortgage with CBA

After announcing their $5.6bn profit, hiding behind "increased funding costs" is wearing a bit thin....I'm glad I don't have a mortgage with them anymore.

These guys are filth. I have friends who are CBA employees, and despite the mega profits of over $30bn the last decade, they all got a paltry $800 pay rise for the YEAR, this year.

The money's going somewhere; yes, some are going to dividends, but not all of it, and differential funding costs are back to PRE-gfc times.

Aside from that, I'm sick of Wayne Swan's indignation for the 45th time. Do something about, or shut up.

If you've got a mortgage with CBA, and you've been with them for longer than 3 years, switch.

If you have an interest bearing account with the CBA, ask when you're going to get your .45% on your savings, and if you don't get it, switch.

If you have a non-interest bearing account with the CBA, move to a credit union, fast.

There's talk on the posts about interest rates dropping soon (ish). There will not be any interest rate drops any time soon.....

There are people out there with real financial hardship, and I'm talking below the bread line. Very few people on these forums can say they are below the bread line, let alone the "working poor"...
 
If you have an interest bearing account with the CBA, ask when you're going to get your .45% on your savings, and if you don't get it, switch.

If you have a non-interest bearing account with the CBA, move to a credit union, fast.

The banks do indeed get a lot of "free/cheap" money through their retail arm and CBA has touted their popularity in the retail sector when promoting themselves to shareholders.

I have NO business with CBA. Left them >20 years ago.
 
Thumbs down CBA

I have just signed up to a deal with CUA - Credit Union Australia Bank 3yr fixed rate of 6.75% last week and have just left the CBA where I am paying $350 per year to get a .15 discount (currently variable 6.70%). The CBA could offer only 7.19% fixed for 3yrs and I would have to spend $350 a year to get the discount. I worked it out over 3yrs I will save 12k minus exit costs in leaving the CBA, it is fully offset which is another thing CBA wont offer. The CBA have charged me $700 per loan as I am leaving within the first 4yrs of establishment so thats $2100 down the drain.

Even though I am only 24 I have banked with the CBA my whole life until now and even had shares in the company, this meant nothing to those greedy button pushers on the other end of the phone. I would strongly urge if you can find a better deal don't hesitate even though its an inconvenience as you can see the figures can add up to a healthy savings.
 
For the record, I hate the typical response, why don't you buy CBA or [insert name] of relevant bank shares. :rolleyes: Well for some people who are active investors, you would need a couple million dollars worth of shares to counter the interest rate increases but then again that's not the point. Just a condescending smarta** response imo.

In saying that, whilst I don't enjoy paying more in interest rates, unless this is just a cheap way to vent and get it off your chest, then go for it. My guess is, the outrage of CBA customers will ultimately dissipitate and there will be only a very small fraction of people will move their business elsewhere, if at all. The same thing happened with WBC hiking their rates last time 45 basis points. Are they still not leading market share in the mortgage market with CBA?

If the smaller banks or non-bank financial institutions had a compelling offer(s), do you not think more people would have moved already. And would you move your business to a smaller bank but cost you more, to makes a point. The market never lies......
 
May I make a clear and unequivocal statement here?

"Australia" doesn't owe mortgage holders a damn thing!!

They are simply one side of the saver/borrower interaction. As a retiree I understand that savers have rights too.
 
"Australia" doesn't owe mortgage holders a damn thing!!
They are simply one side of the saver/borrower interaction. As a retiree I understand that savers have rights too.

Mate I'm on your side on this one, but I'm certain that your term deposit isn't going to increase by 0.45% tomorrow or in the near future.
IMO the banks had it too good for too long and its time for this to change.
 
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