Looks like rates are going up

Discussion in 'Property Market Economics' started by dan c, 9th Sep, 2010.

  1. dan c

    dan c Member

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    Here's the link

    One good thing about the extended federal election, it has delayed the banks raising interest rates by three weeks.
     
  2. Aaron Sice

    Aaron Sice Seldom Seen Kid

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    uh huh.

    and to top that off, how can their cost of borrowing be going up when no matter where they source it from, it's consistently cheaper than australia? are they using their own 19.99% credit cards?
     
  3. Deltaberry

    Deltaberry Member

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    Think cost of AUD funds from offshore sources are driven off domestic cash rates (ie AUD cash rates) + X bps to reflect forex risk, esp when risk is an AUD depreciation?
     
  4. Rolf Latham

    Rolf Latham Member

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    both cba and wbc might breal lock step

    ANZ and NAB less likely

    Id rather a solvent lender with a slightly higher rate, than a lender that cant pay its dues ...................they will generally only break step if they feel they need to

    ta
    rolf
     
  5. Bigtone

    Bigtone Member

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    NAB r keen to go but my guess is that won't do it until next rba move, they will probably throw on 10-15 points of their own when rba moves next.

    never had a fixed loan in my life but thinking some of those under 7% rates for 3 years might be worth it on some equity accessing i am currently doing
     
    Last edited: 10th Sep, 2010
  6. tcocaro

    tcocaro Member

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    Somehow I dont think the fear of bankruptcy is the main driver behind banks in Australia raising rates.. maintaining their margins is a far cry from using the word "solvent" in describing their actions..

     
  7. Rolf Latham

    Rolf Latham Member

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    Bankrupt and insolvent arent the same.............one is a cashflow issue , the other is an asset issue.

    While I hear what you are saying, the best example of my comment is perhaps the old RAMS, now RHG.

    Most of the banks have other income streams and arent as exposed to JUST mortgage lending as Old Rams was.

    The good thing is that most borrowers have some form of choice, so let the markets decide, and the borrowers can vote with their feet.

    The lock step break didnt hurt Wesuck too much (according to their blurb anyway )

    ta
    rolf