Commbank silently raises the Rates

Apart from being a shareholder, i am also happy with with as a borrower.
Although i have to pay a higher interest rate, it also increases the sustainability of the residential property market.
The last thing i want is a bunch of people buying property with unrealistically low interest rates, only to find out later that they cant sustain their repayments.
Short term pain for long term gain (at least for a long term buy and hold investor as opposed to a property flipper).

Just my opinion.
 
It just makes their slogan 'determined to be different' that much more ironic.

They still state that their SVR is lower than their competitors, but who actually pays the SVR anyway?

For the average mortgage in Australia of $350k, they're actually discounting significantly less (0.5%) than most competitors. They're claiming to be the cheapest, but they use deceptive tactics to make sure that their marketing looks good without actually delivering to the consumers.

The same applies to their basic product - it's cheaper for the first 3 years, but then it goes up whilst the others stay the same.
 
THEHEATH said:
Ummm, I think the horse has already bolted on this one!!
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Not really, until property prices start moving significantly above their late 2007 levels im not really worried. But if prices move signifcantly higher than late 2007 levels & interest rates are still at historical lows, then alarm bells will be going off in my head.
 
chilliaa said:
Not really, until property prices start moving significantly above their late 2007 levels im not really worried. But if prices move signifcantly higher than late 2007 levels & interest rates are still at historical lows, then alarm bells will be going off in my head.
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Well when you can get $30k to buy a new house and developers just keep wacking up their new house prices to match and all these new home buyers have rushed out to buy...what's going to happen when the grants fall back to normal levels or taken away all together? Anyone that was even contemplating buying will have rushed in to get the extra $$$ already so you'll have less buyers, developers will be reducing their prices to build because they will HAVE to to attract buyers, which means negative equity automatically, add in to the mix a couple of rate rises and the odd force and watch the blood spill into the streets.
 
THEHEATH said:
Well when you can get $30k to buy a new house and developers just keep wacking up their new house prices to match and all these new home buyers have rushed out to buy...what's going to happen when the grants fall back to normal levels or taken away all together? Anyone that was even contemplating buying will have rushed in to get the extra $$$ already so you'll have less buyers, developers will be reducing their prices to build because they will HAVE to to attract buyers, which means negative equity automatically, add in to the mix a couple of rate rises and the odd force and watch the blood spill into the streets.
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I think this is spot on.

The only savior here will hopefully be that with this unexpected rate rise by CBA, it will put the wind back up everyone.

They will see this as an indicator that things aren't going to be low rates forever - that the Banks can put 'em back up on a whim, and it will cause everyone to crawl back into their non-consuming holes once again.

The recession (that everyone is desperately trying to deny) will reappear, and the rates will have to stay the same, if not drop down again.
 
Spectre said:
&
BIS now saying - watch for the growth
http://money.ninemsn.com.au/article.aspx?id=825426

Wow - 3 year crystal ball...
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More moderate growth is expected in Brisbane, Hobart, and Canberra, while price growth in Perth and Darwin is expected to be weak as the local economies of these cities are impacted by a decline in investment spending in the resources sector.
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you're 'ken joking right? decline in investment doesn't mean lack of growth.

one mining company i'm watching has over $6BIL in the bank - for a small cap that's unreal - AND they want to spend it. BHP/RIO merger will see a loop train system instead of the passing system they have now - that will TRIPLE production and triple the number of jobs.

sorry - sometimes these forcasters have their head up their ar*e.
 
http://www.news.com.au/heraldsun/story/0,21985,25674305-664,00.html

ONE of Commonwealth Bank's most senior executives says the group may be forced again to increase its variable mortgage rate outside of the Reserve Bank's official cycle.

Now remember, the last .10 increase brought fixed rates up by .50 or so.

When (or if) it happens makes the predictions on the 5 year fixed rate thread pretty sharp if the same thing happens again.
 
Last edited:
Interesting article - comparison between the majors and the rest...

http://au.biz.yahoo.com/090623/31/2717y.html

The latest official statistics on bank performance, released today by the banking regulator, APRA, show a yawning chasm between the major banks and the rest.

The profit margin for Australian banks last year was 23.2 per cent, but the four major banks operated at a 30.6 per cent margin, while the other domestic banks ran at just 12 per cent.
 
HandyAndy888 said:
Yeah, but in reality, this just moves them from being "lowest rates" to "similar rates"...it was bound to happen...
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Very true... The media don't want to let the facts get in the way of a good story.

BKW 5.70%
CBA 5.74%
NAB 5.74%
STG 5.79%
SUN 5.80%
ANZ 5.81%
WBC 5.81%
BOQ 5.89%

As a CBA customer & shareholder, I am happy with the increase in line with the other majors.
 
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