Macq raised interest rates .45%
- Thread starter mitta
- Start date
Rams
Rams - or i should say "RHG" have raised rates since westpac took them over from 8.13 - 9.24 and it went up again this week to mid 9s. I think i nearly fell over when i saw interest rate over 9%!!! Mental barrier more than anything. Anyway I have locked in 3 out of the 5 loans we have with them at a staggering 9.9%!! Crazy I know , however i would cry if i had to pay 10+% on resi stuff just in principle.
Rams - or i should say "RHG" have raised rates since westpac took them over from 8.13 - 9.24 and it went up again this week to mid 9s. I think i nearly fell over when i saw interest rate over 9%!!! Mental barrier more than anything. Anyway I have locked in 3 out of the 5 loans we have with them at a staggering 9.9%!! Crazy I know , however i would cry if i had to pay 10+% on resi stuff just in principle.
how much of those increases have been RBA increases?
bloody banks ! By the way when the interest goes up do the extra repayments go to the bank's profit ?
'Tis odd that you choose an investment path that explicitly requires the banks to lend you vast sums of money and you screamed if they wanted a higher LVR than the 10% you were willing to pay.
Everything changes, both wholesale and retail money is now hard and expensive to find for the banks so now they are screwing you, returning the favour for when you screwed them a year ago.
BTW My Maccas LOC has gone from 8 to 8.25% and I agree that they are highway robbers
but mostly on fees.
Everything changes, both wholesale and retail money is now hard and expensive to find for the banks so now they are screwing you, returning the favour for when you screwed them a year ago.
BTW My Maccas LOC has gone from 8 to 8.25% and I agree that they are highway robbers
but mostly on fees.I agree with sunfish. If you've chosen property as your main investment, you'd better know how to deal with banks. Otherwise you're just hating your business partner.
Alex
No. It goes to the other investors who lend them the money which they lend you. Banks have no meaningful equity invested, they are retailers of money.
It could be that the banks who are increasing rates above the RBA 0.25% are linked to the US problems in 1 way or another so they want to increase profits to balance any losses out.
Anyway increased rates simply means that more people will take their business elsewhere so what they are trying to gain one way they will lose it because of a reduced customer base.
Cheers
Anyway increased rates simply means that more people will take their business elsewhere so what they are trying to gain one way they will lose it because of a reduced customer base.
Cheers
BTW My Maccas LOC has gone from 8 to 8.25% and I agree that they are highway robbers
An apology: Tidying up my desk I have just found the next letter from Maccas which tells me of the extra 0.18%. Did someone mention bustards? LOL
Hi Alex
Thats a good way to describe the relatinionship
ta
rolf
Thats a good way to describe the relatinionship
ta
rolf
Hi Alex
Thats a good way to describe the relatinionship
ta
rolf
None of us would be able to do what we've done, bought what we've bought or made the money we have without banks. They're still cheaper than borrowing from loan sharks.
Alex
Exactly, a great majority of propert investors wouldn't be very far along without them - who uses cash to buy properties! I have no problem with banks, as long as they don't stop me paying them interest ie. giving me more and more loans.
Macq stating for the last - Feb rate rise that they have increased rates by .45. Wow
Hi mitta,
I have 2 loans with Macq. and both only went up 0.3%. Maybe they have different increases for different borrowers?
Aimjoy
Give the banks a break here... we would be no where without them.
When rates go up all the banks are doing is maintaining there margins e.g RBA increases cash rate and the banks inturn increase there rate by an equivelant amount to cover the cost of borrowing... think of it like you ar echarged extra interest by the banks of say $100 and you try an pass it on to your tennants... bloody landlords!
The situation we have here is indirect exposure to the US, and the tightening of credit markets globally has resulted in less available credit as a result of securitisation (where banks pool loans together and sell them to investors) deals drying up... hence demand for credit is constant and supply of credit is reduced... pushing up the price that banks get credit from the wholesale markets at.
When rates go up all the banks are doing is maintaining there margins e.g RBA increases cash rate and the banks inturn increase there rate by an equivelant amount to cover the cost of borrowing... think of it like you ar echarged extra interest by the banks of say $100 and you try an pass it on to your tennants... bloody landlords!
The situation we have here is indirect exposure to the US, and the tightening of credit markets globally has resulted in less available credit as a result of securitisation (where banks pool loans together and sell them to investors) deals drying up... hence demand for credit is constant and supply of credit is reduced... pushing up the price that banks get credit from the wholesale markets at.
why should we give them a break? They are happy and quick to jack up lending rates, but hardly pass on any of the savings rates back to consumers..
That's not strictly true. Online savings accounts over 8% can now be obtained.
If you can get a better rate elsewhere, leave them! Truth is, the rates have gone up across the board about the same, adjusted for credit risk. Macquarie's not making any more on the deal... they're just forced to pay their funders a better rate because of the lately increased risk of default.
show me which one pays 8%?
I have seen the RBA raise rates by .25 pts, but the online saver only went up .15 I have also seen bank raise rates indepentantly, but that indepentant raise wasnt applied to the online savers.. so although they are going up, they arent going up at the same rate as the loaning rate
Sorry, I saw 8% in the paper, that's for 1 year deposit. For at call, RaboPlus offers 7.15%.
Your particular online account may not have gone up enough, but that's competition right - change to a better account. People are sticky with their banking which is why the banks can increase lending rates faster than deposit rates. But the lower deposit rates don't last long.
Your particular online account may not have gone up enough, but that's competition right - change to a better account. People are sticky with their banking which is why the banks can increase lending rates faster than deposit rates. But the lower deposit rates don't last long.
