CBA raises variable rates by 0.45%

Well....I am moving because I have been offered 6.69% fixed for 2 years.

The exit cost is 1 months IR payment.

The total cost of exiting CBA (includes a rate lock fee) is about $1400 and I will get a cash back of $550 so it will cost me $850 per loan and peace of mind for 2 years.

Why would I not move.....just waiting for the paperwork. The only fear I have is that CBA will drag their feet....I hound them till they perform!:p

I can't believe people are making the move away from the CBA yet. The other banks haven't said anything yet on their IR movements.

And on that, I cannot understand why they haven't announced yet. Just increase the interest rates and face the music....like the CBA.
 
Looks like my friends at CBA will actually be living up to their name of determined to be different after all!

http://www.news.com.au/money/bankin...terest-rate-hike/story-e6frfmcr-1225950188406

I am tempted to suggest.....instead of the poor bank staff being spat on it might be a good idea to put a picture of Ralph Norris in a corner of every CBA branch. That way the spit could be directed there!!;)

Seriously....40 staff added to cope with the exits....the mind boggles with the bright sparks at the CBA!

The amount of brand damage being done...is huge...and will translates into profits if people leave in droves. Will be interesting to see how this affects the share price of CBA....it was the darling before.
 
Looks like my friends at CBA will actually be living up to their name of determined to be different after all!

http://www.news.com.au/money/bankin...terest-rate-hike/story-e6frfmcr-1225950188406

I am tempted to suggest.....instead of the poor bank staff being spat on it might be a good idea to put a picture of Ralph Norris in a corner of every CBA branch. That way the spit could be directed there!!;)

Seriously....40 staff added to cope with the exits....the mind boggles with the bright sparks at the CBA!

The amount of brand damage being done...is huge...and will translates into profits if people leave in droves. Will be interesting to see how this affects the share price of CBA....it was the darling before.

CBA had lower rates then WBC, WBC will increase 0.3% and have the same standard variable rate as CBA. But CBA will cop all the backlash.

I have heaps of loans with CBA, but im not one of these red neck idiots who don't understand what is going on. CBA delay is so the rednecks can see that other banks are going to raise above RBA.

Hope the idiot who spat on the worker got arrested.

Regards,

RH
 
Looks like my friends at CBA will actually be living up to their name of determined to be different after all!

http://www.news.com.au/money/bankin...terest-rate-hike/story-e6frfmcr-1225950188406

I am tempted to suggest.....instead of the poor bank staff being spat on it might be a good idea to put a picture of Ralph Norris in a corner of every CBA branch. That way the spit could be directed there!!;)

Seriously....40 staff added to cope with the exits....the mind boggles with the bright sparks at the CBA!

The amount of brand damage being done...is huge...and will translates into profits if people leave in droves. Will be interesting to see how this affects the share price of CBA....it was the darling before.

"The mind boggles alright" 7 rate rises and then you catch on. Talk about brand damage, then you promote the fact on a forum yep the mind boggles. I think your spit dribbled and landed on your foot.
 
collusion by default? gameplay theory?
I reckon. But the others have hung CBA to dry as the fall guy. If they weren't going to raise above 0.25 they would have announced it early & been given the Good Guy hat by the media. None of them have been tempted to do that so they must have planned something between 0.25 & 0.45. Hard to believe any of them is operating an independent strategy when they're waiting around for the other guy before playing their next move.
 
Was on the news this morning that ANZ have not raised their rates independently on Variable loans, only on fixed loans. Therefore they have only added the RBA's 0.25%.
 
Actually just read a news article stating ANZ still havent decided on the variable loans.

Obviously when the media said they have raised there fixed rates, but not variable, they didnt mention they still hadnt decided on the variable loans. Made it sound like the variable rates werent raising independently
 
Actually just read a news article stating ANZ still havent decided on the variable loans.

Obviously when the media said they have raised there fixed rates, but not variable, they didnt mention they still hadnt decided on the variable loans. Made it sound like the variable rates werent raising independently

sounds like that's good spin, they should work for Rudd.
 
Hmmmm.....you are must ASSUME (As of of U and me)....

As for the 7 rate rises....I woke up to fact over 18 months ago when I fixed most of my 10 loan rates for 2-3 years with a 5 in front.:p

I thought I wasn't promoting CBA....I thought it was in clear English.;)

Now back to CBA....the issue I have with them seems to be universal....reports via people within the CBA the bank has had over 160,000 people asking for exit fees. Even if only 50,000 move they will not be able to cope. Assuming a 400k average mortgage....that would be about $20B in loans leaving.

Do ell us what you are doing???:D

As for share prices....just remember Westpac was sitting at $28 about 8 months ago now it hovers between 22-24...I should know as I own over 3000 shares. One of the reasons I suspect is the position they took on Home Loans. Remember people wil try to keep their banking and loans together. I suspect there was a move away from Westpac when they moved away from the pack in terms of rates.

Time will tell....but if past is a predictor....CBA is likely to be seen as more risky...particularly if people move all their business. Remember it is 20% of the profitable customers who will make the move because other banks and credit unions will court them.

This ends our lesson on banking theory Intrigued!



"The mind boggles alright" 7 rate rises and then you catch on. Talk about brand damage, then you promote the fact on a forum yep the mind boggles. I think your spit dribbled and landed on your foot.
 
Sash i think in nearly all of your posts you mention the fact that you locked in your rates with a 5 in front.

You should maybe think of putting that in your signature so you dont have to keep typiong it! :p
 
160,000 people asking for exit fees. Even if only 50,000 move they will not be able to cope.

They cant handle the current discharge volumes and have been under resourced ( like almost all lenders at the back end). Many will give up simply because they cant get their mortgage released.

Moving mortgage backed loans aint so simple, and the various proponents of this idealogy often dont see what they are promoting. As a broker youd think I love the idea, but the reality is it often doesnt serve the borrower.

8 mths ago the same crowd said move from WBC to CBA.................now its from CBA to XYZ .

Until the dust settles middle term, most ( but not all ) MAY be best served to stay put, and not spend X dollars to go from bull shark to white pointer :)

Having said that there is already some cannibalization of CBAs book going on by one of its owned entities. BWA are doing some pretty aggressive stuff on intros with nil app fees with a nice 95 % IO with offset.

ta
rolf
 
Yep....but some are now coming off....one can't rest ones laurels...not trying to be smart. Hopefully I can lock in with a 6 in front...so when the remaining rates come off at 7 or 8something I still have plenty of CF+. It has been amazing how rates have reduced my postive CF of 60k+ per annum down to just under 40k. If rates go up another 1% I could be done to less than 20k on CF+. I intend to ramp up buying again....thus my focus....and having 4 loans with just CBA I have to move fast.

A lot of people concentrate on buying property but is only the vehicle the main game is how the property is financed....you get this wrong you can forget building a sustainable portfolio.

From where I sit I see us heading to rates with an 8 in front...particularly if the labour shortages push wage increases past 4%.

Won't put it in my signature.....I like the one I have better....;)

Time will always tell.....


Sash i think in nearly all of your posts you mention the fact that you locked in your rates with a 5 in front.

You should maybe think of putting that in your signature so you dont have to keep typiong it! :p
 
Rolf....this time I am bypassing the Big 4.

The guys I am dealing w
ith are backed by one of the Big 4 but operate on thinner margins. They still offering 2-3 year rates under 7% and no their exit fees are not expensive....approximately 1 mths repayment which I am prepared to live with. Besides...at some point I suspect deffered establishment fees will be removed.

Waiting can be false economy as then the masses will jump in.....as I suspect most will wait for the est fees to be waived.

Only my thoughts....but the current rates I am being offered are too good to turn down. Also, next year I plan to buy more properties so the less interest I pay the more I have to spend for other properties.

A lot of people are moaning but need to move fast as the window of opportunity for low fixed rates is rapidly diminishing.:(

They cant handle the current discharge volumes and have been under resourced ( like almost all lenders at the back end). Many will give up simply because they cant get their mortgage released.

Moving mortgage backed loans aint so simple, and the various proponents of this idealogy often dont see what they are promoting. As a broker youd think I love the idea, but the reality is it often doesnt serve the borrower.

8 mths ago the same crowd said move from WBC to CBA.................now its from CBA to XYZ .

Until the dust settles middle term, most ( but not all ) MAY be best served to stay put, and not spend X dollars to go from bull shark to white pointer :)

Having said that there is already some cannibalization of CBAs book going on by one of its owned entities. BWA are doing some pretty aggressive stuff on intros with nil app fees with a nice 95 % IO with offset.

ta
rolf
 
smells like Advantedge.

Choicelend probably

good product ..............but has its chinks too

If you are going mainly fixed Heritage is a good option too, but once again has issues.

ta
rolf
 
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