CBA Start the Rate cut

[Qlds007]

The Commonwealth Bank will cut its standard variable home loan interest rate by 0.10% following the Reserve Bank of Australia's cut to the official cash rate. The Bank's new standard variable rate will be 5.64%. Our Line of Credit will be reduced by 0.05%.

The new rates will be effective from Friday 17 April 2009 for new and existing customers.

 

[Peter_Tersteeg]

Well....

They're the market leader so far.

 

[Qlds007]

Pete agreed.

When you read what it costs a lender to send out notification to all borrowers, investors etc to notify them of the rate change it hardly seems worth it.

Guess for 5 minutes they can say we are up there with the best.

 

[Rolf Latham]

I suspect some of the other will go 20 pts

ta
rolf

 

[Peter_Tersteeg]

Richard my wife made exactly the same observation A quick announcement like that does open them up to a good bashing by the media though. They'd be far better off to wait a day or two and let someone else take the pounding.

Others will drop a lot more, but in some cases it's more a catch up and get even than an extra bonus.

 

[steveadl]

NAB - no cut.

 

[Jodie701]

5.64% after a rate cut. Sounds laughable to me.

I'm already sitting on 5.19% variable with ING (with no other fees, so that's the comparable rate) and hoping they'll pass on the cut.

 

[Rolf Latham]

Hiya Jodie

Only a few borrowers would be paying that 5.64 though, many will now be below 5 % variable

ta
rolf

 

[sparky23]

Yes mine is 4.94% now.

 

[Qlds007]

Sparky

keep telling you are special CBA client and they like hence the extra discount.

 

[sparky23]

Hmmm shame I'm not a special ING client! LOL

 

[Qlds007]

Still working on that one.......

 

[Aaron Sice]

i'm with you sparky! 4.94% now - fully variable lo-doc.

 

[BayView]

Yes mine is 4.94% now.

How have you been able to find out the rate change Spark?

I looked online at my accounts and there's no change stated.

The table of rates is still at 5.09% for the LOC

 

[steveadl]

The news websites always report the drops before the banks own sites Marc, best to keep an eye on them when the RBA announce.

 

[Lukey13]

Does anybody know whether Suncorp is passing on the cut?

 

[sparky23]

How have you been able to find out the rate change Spark?

I looked online at my accounts and there's no change stated.

The table of rates is still at 5.09% for the LOC

It won't show up on the CBA website until it actually happens, I think its about the 16th April that it is effective from.

 

[AUSPROP...]

the delay with ANZ and westpac is annoying - I am sure they had given consideration to what they would do

 

[Rob Williams]

the delay with ANZ and westpac is annoying - I am sure they had given consideration to what they would do

Exactly. They have already worked out what their plan is under all possible outcomes. I suspect they are waiting to see which way the wind is blowing. No way do they want to put their hand up for the full cut, then find all the other majors are doing the opposite.
I called ING earlier and their "hold" message still says they are thinking about it.

 

[Gremlin]

the delay with ANZ and westpac is annoying - I am sure they had given consideration to what they would do

I'm sure they had given it prior consideration. But I don't think they'd anticipated NAB's announcement. I suspect if NAB had announced a 10bps move (or 15 or 20 or whatever) then ANZ and WBC would both have announced theirs by now.

If I were them, I'd be weighing up whether this gives them the opportunity to grab more than they would've otherwise since any the bulk of the poor publicity has already been worn by NAB.

If I were them, I'd also be tossing up whether there's a competitive advantage in seeing how the other now reacts. You can then position yourself exactly where you want in terms of a competitive position.